– Adam Smith
To become debt-free, you need to plan for success. Addressing debt calls for a methodical approach. There are no magical solutions. You have to commit, stick to your plan, and persevere. ClearOne Advantage can provide a foundation to help you achieve freedom from debt.
Let's look at each of these steps in a bit more depth.
How you address your debt depends on your current circumstances. You may have already taken steps to improve your financial situation, but knowing where you are right now will help you identify what you need to bridge the gap between where you are and where you want to be financially.
If you are having trouble with this, or any steps in the process, we recommend consulting with a ClearOne Advantage Certified Debt Specialist. We have helped thousands of people develop plans to improve their finances and defeat their debt and can help walk you through the process.
Everyone handles money and juggles finances according to their own set of beliefs and attitudes. Some of those beliefs may be handed down from parents or other respected people in our lives, but when you decide to tackle debt, it's good to take a step back and examine your financial belief system. You may find that some of your attitudes or beliefs about money matters are contradictory to your goal of ridding yourself of debt.
Knowing your trouble areas is the first step toward eliminating them. It also helps to have a good understanding of where your debt originates.
The average American consumer is likely burdened with debt originating from:
(Source: Magnify Money)
People overspend for a variety of reasons such as emergency medical services, travel expenses, necessities, and a range of unnecessary purchases with plastic. Making only the minimum payments on the credit cards undermines financial well being.
– Nathan Morris.
Debt is not cheap, and you have to pay sooner or later. Exactly how expensive is debt?
Consider the following hypothetical example. You have a debt of $26,000 with 18 percent interest and you pay the 3 percent minimum amount every month.
At the end of your first year, you will have paid $7,965. After interest charges, you will have reduced your principal by $3,982, for an owed balance of $22,018.
By the end of your fourth year, you will have paid $26,443, which is $443 more than your original debt amount. Your owed balance would still be $12,778!
If you cannot meet your monthly debt obligations and you need to decide which debts to pay, the debt your creditor is most aggressively trying to collect is not your top priority.
Your top priorities are the roof over your head, your car, and your necessities. Secured debt is your greatest priority. Defaulting on these types of debts can jeopardize these assets.
A spending plan will help you get started with your credit card relief in three ways.
Setting up a budgeting system may be as simple as grabbing a pen and some paper. You can also use dedicated apps or spreadsheets to help. Break your expenses into three categories.
Your current financial situation determines whether you need professional help with debt resolution or not. Ask yourself some questions.
If your answer is “yes” to more than a couple of these questions, you likely need professional debt relief help.
Contact a ClearOne Advantage Certified Debt Specialist at 888-340-4697 to help you determine what the best debt relief option may be for you.
You do not have to take all of these steps on your own. ClearOne Advantage can help you with each of these steps. Our Certified Debt Specialists can discuss your current financial situation with you to help you determine the best plan for going forward and getting out of debt within a reasonable amount of time. With some diligence, perseverance, and help, you can realistically defeat debt.
Take a proactive step to eliminate the stress of debt from your life now. Call one of our Certified Debt Specialists and get a personalized debt relief plan today.
I wish to thank you for all of your agency support and encouragement. The last two months have been very stressful due to the accounts going legal. It has been also very rewarding to get through this process and have a good grip on our future and we have started this planning and example for our children.