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3 Tips to Help You with Your Debt

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This article focuses on 3 very simple tips that are often overlooked, to help you with your debt. Many people are overwhelmed with their debts. There’s no reason for it to be this way and you do not need to suffer with it any longer. Follow these tips:

 

1. Go with lower interest credit cards

Your monthly payment is a combination of principal and interest charges. Lower interest means more share towards principal and faster elimination of the debt. Few ways to get a lower rate:

  • Apply for lower interest credit cards, and transfer your current balance.
  • Request your bank/provider to lower the interest rate on your existing credit cards.
  • Look for promotion store cards with low or deferred interest charges.

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2. Pay your credit card debt with loans or lines of credit.

Usually, a loan comes with lower interest charges. It can also put in order your monthly budget because of its fixed installment charged once a month. Few ways you can combine and manage your debt:

  • Get a line of credit from your existing bank/ provider and transfer your debt from credit card to the line of credit.
  • Apply for a personal loan or a debt consolidation loan to pay for all the credit cards and stick to the monthly payment of the new loan.

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3. Use your insurance policy

Some life insurance policies come with an option to borrow money. Use that money to pay your high interest credit cards or other loans. This amount that you borrow will not charge you any interest but it will be simply deducted from your final estate amount. There is no obligation to the return the money that you got from your policy. So there is no need to pay it back if you don’t want to.

With these three helpful tips hopefully, you can have a better idea to manage your debt. At Credit Management Services, we have always worked for the consumers to help them pay off their debt in an efficient manner.