Take a Bite Out of Your Debt
in '04! Part I
by
Tommy Holmes
Take
a deep breath and say this with me: “I’m in debt.”
Don’t
be ashamed -- you’re not alone. Being in debt has become
the American way. The great news is that the fact that you're
reading this article probably means that you're ready to take
control of your financial situation.
AVERAGE
CREDIT CARD DEBT EXCEEDS $2000!
According
to the annual Credit Card Survey by Myvesta.org, a nonprofit consumer
education organization, the average American is now carrying $2,294
in credit card debt. And that’s only one source of debt…it
doesn’t include student loans, second mortgages, car loans,
etc.
Is
it possible to get out of debt? Absolutely. Many people have done
it – even those who were seemingly sinking under the weight
of their debt burden. One of the most important levers in lowering
your debt is lowering the amount of interest you pay on your outstanding
loans.
LOWERING
YOUR INTEREST IS CRITICAL!
Lowering
the interest rates on your debt is absolutely critical to paying
it off. It may not seem like a lot when you compare a credit card
with a 7.9 APR (Annual Percentage Rate) to one with a 14.9 APR
in the short term…but in the long term – it can mean
years of additional payments if you’re only paying the monthly
minimum.
Here
are some ways you can lower your debt:
Consider
a home equity loan to consolidate debt
Home equity loans are one of the best ways to get ahead if you
have a lot of debt. You can transfer all of your outstanding
balances to the home equity loan and make one simple payment.
Often times, you’ll get a lower interest rate with a home
equity loan, and best of all, the interest that you pay is tax-deductible.
That’s a win-win situation. And since rates are still
quite low right now, it’s a great time to do it!
Make
credit cards work for you
Credit cards have gotten a bad rap – mainly because some
people find it difficult to control spending when a card seems
to offer "free money".
Well,
unfortunately the money’s not free forever, but you can
make credit cards work to your advantage.
Many
credit card companies have very low, or even 0% intro rates
that can last anywhere from three to eighteen months. Transfer
your balances to one of these credit cards and enjoy super-low
or even 0% interest!
Call
and Request a lower rate
Sounds simple but you’d be surprised how often it works.
It’s a very competitive market for financial companies
these days – and it costs more to lose your business and
find another customer than it does to retain you. So if you
can’t find a lower rate, call your company and request
one. They just may give it to you.
If
they do lower your rate, continue to make the minimum payment
you make currently and you could end up saving yourself years
of payments.
We
encourage you to take advantage of these tips – the sooner
you make a change, the sooner you’ll pay off your debt.
And
be sure to check back soon for Parts II and III of the Get Rid
of Debt series!
Achieve
Black Wealth can help you put your financial dreams into motion.
E-mail us at letsgetstarted@achieveblackwealth.com
today and one of our financial planners will help you secure
a solid financial future!
