Any activity you take on needs the right tools. If you are losing weight you need a good menu, a scale, a coach. Same goes for training for a marathon or building a deck. If your goal is to get out of debt, here are 5 important tools to have in your debt-free toolbox.
1. A Good Budget
It doesn’t have to be complicated or detailed but the starting point in any debt reduction program is to know where you are spending money today, where you can save and how much you can afford to pay towards your debt each month. A good budget can also be a great tool for monitoring your spending when you are trying cut back on expenses so you can eliminate your debt faster.
2. A Debt Repayment Calculator
Just how long will it take you to pay off your debt based on your proposed repayment schedule? What should you be paying towards your debt each month to meet your debt-free deadline? Our debt repayment calculator helps you compare the cost to pay off your credit card or similar debt based on three payment options:
- making only the minimum payments each month
- making the same fixed payment each month until your debt is paid off
- making payments to eliminate your debt within a specific time period you choose (say 3 years).
This calculator will tell you how much you need to pay each month, how long you will need to make these payments to get out of debt and what your total interest costs will be. Using this information choose the right debt repayment plan that suits your budget.
3. A Debt Repayment Plan
Whether you are paying off your debt on your own, or choosing a professional debt relief option, you need a debt repayment plan. Like your budget, it doesn’t have to be complicated. It’s simply a way to reduce or eliminate your debt. Any plan you choose needs to work for you. Here are a few related articles that can help you get started:
- How To Reduce Your Debt | 6 Debt Reduction Tips
- 10 Steps To Pay Off Credit Card Debt
- What You Need To Know About Eliminating Credit Card Debt
- Tips for Making Your Budget Work
- Budgeting Tips To Save Money
4. Healthy Options
When planning a menu for weight loss you need to have the right food in the house. Getting out of debt is much the same. You need to choose the right ‘diet plan’ that will help you accomplish your goal. There are no quick fixes and no one plan will work for everyone. Research your debt relief options carefully so you choose the plan that will lead to your success. If you would like to compare the cost of different options, try our debt options calculator.
5. Professional Advice
Sometimes when you are tackling a big task you need to get some professional advice. If you are training for a marathon for example you will probably look for a running coach. The same goes for getting out of debt. An accredited debt advisor can act as your debt coach. They will help you look at your current situation, explain how different debt relief options can help, give you some advice for moving forward and give you support along the way. If you are struggling, contact an accredited, debt advisor today for help.