Step by step guide to keep your debt under control
Stuck in the trap of repaying the debt? You are not alone. If you’re concerned about how you’ll eliminate expensive credit card debt or manage the ones you buy now, pay for subsequent credit purchases, here’s our step-by-step guide to keeping your debt under control.
Step 1: Check your credit report
The first step in keeping your debt under control is understanding the current state of your finances, and a good place to start is with your credit report. Falling behind – or even missing repayments – is not only stressful, it also affects your ability to borrow in the future. Because whenever you apply for a credit, be it a personal loan, a home loan, or even utilities, lenders first check your credit report to see how well you manage your repayments and use this information to determine whether or not to grant you a loan. That is why it is so important to maintain a good credit history, repaying debt on time and in full and not missing out on any repayments.
Checking your credit report is easy and free, and something that all borrowers should do on a regular basis. By monitoring your credit score, you can keep up to date on any errors that may occur, make sure your personal information is always up to date and correct, stay informed about your current financial situation, and be motivated to continue improving it if necessary. After all, a healthy credit score improves your chances of success when it comes to future credit applications.
Step 2: Create a list
The amount you owe will have a direct impact on your budget and guide how you can pay it off. Then make a list of all your current debts, minimum repayments, and the applicable interest rate that you are charged. This way you will have a much clearer picture of your current financial situation. And this will help you determine the best method to quickly and inexpensively reduce your debt while still having enough to pay for your daily needs.
Include any credit payments, such as your credit cards, HP purchases, or any other account you are making installment payments to. Add everything to get the total due. And while it may be necessary to list all your debts, it is helpful to know that you are taking steps to take control of your finances and working to clear your debt.
Step 3: Consider your options
Now that you have a clearer idea of how much debt you need to repay, you may need to consider strategies on how to repay the debt. Some people choose to pay off debt with higher interest first to save on interest. For others, writing off small amounts of debt is motivating, as every small debt repaid is one less debt they owe.
Another strategy for repaying high interest loans is Debt Consolidation, which can allow borrowers to consolidate almost everything they owe into one manageable personal loan. Some of the benefits of debt consolidation loans include a much lower interest rate than credit cards or buy now, pay for subsequent credit purchases, as well as the ability to turn multiple loan repayments into one repayment, making budgeting a lot easier.
The right financial solution will depend on your current circumstances and financial situation, so it’s best to discuss your debt consolidation loan options with a Max Loans personal loan advisor.
Step 4: apply for funding
Armed with the right advice, tailored to fit your unique financial situation, you are well on your way to paying off your debt on time and in full. Once you have decided on the right strategy, apply for funding online with Max Loans and we’ll take care of the rest. You can also use ours online loan calculator to calculate how much you might be able to borrow and what your repayments might look like.
Alternatively, if you are a home owner, our experienced mortgage advisors at Massimo Mortui may be able to help raise your home loan to pay off your other debt. Call us 0800 ASK MAX (0800 275 629) to discuss your needs and options!
Help you manage your debt
With access to a variety of personal loan providers, the Max Loans team works hard to find the most competitive staff New Zealand loans wide. Our processes are simple and straightforward, designed to make things easier for you. Get in touch today to learn more about debt consolidation loans that could help you keep your debt under control.
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This article was published by: Rachael Alexander by title: Step by step guide to keep your debt under control
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