Some Recommended Debt Reduction Tips

Some Recommended Debt Reduction Tips - Getting into debt is not recommended. But getting out of debt is recommended. Debt reduction services and information is easy to get a hold of with the Internet. Human beings are not hardwired to handle money, as we are hard wired to eat and have offspring. We all have to learn about how to spend less than we earn. Sometimes, you get held back a year or so in order to learn. It happens to the best of us. Here are some debt reduction tips, recommended from various banks, financial institutions and plain old common sense.

Don’t Spend More Than You Make

This is the basic message that any accountant or money coach will tell you, except they say it a bit fancier and wear nicer clothes than this writer does. But this is the best thing you can do to not only get out of debt, but to stay out of debt. You do have to know exactly how much your household makes and compare it to how much it spends. Then, adjust your life accordingly. This is the highest recommended debt reduction tip you will get in your life.

Only Have One Credit Card

The second most recommended debt reduction tip is to have only one credit card per household or two at the most. It’s the interest rates on credit cards that puts you and keeps you in debt, not your principal loan. Use credit cards only in emergencies. Shop around to see if you can find a name brand credit card with a lower interest rate than what you have already. See if you can get that estimate in writing. Then call your credit card company and tell them of the news that you have discovered. You might be able to get a reduction in your interest rate.

Get Help From A Debt Consolidation Loan

If your debt amount is more than four digits long, you should really consider going to a debt reduction financial service and handing your paperwork over to them. They can negotiate a debt reduction settlement with whoever you owe the most money to and then they pay off the debt. You then pay the debt reduction service back for the loan you received from them. In this way, you can avoid paying those high interest rates. In order to pick the right service for you, call your bank or credit card company to see if they have a list of recommended debt reduction companies for you.