Paying off debt can be a long and sometimes intimidating process. Money in and of itself is a sensitive subject, but owing money can be even more so. That’s why we’ve taken the time to compile this list of resources for anyone trying to get out of debt. You’ll find everything you need to get started at chipping away those balances.
1. Free Credit Score
The first thing you’ll want to do when chipping away at your debt is to get ahold of your credit score. It’s important that you utilize the correct resources for obtaining this information though, as there are many websites who may not provide the right information or are not trustworthy with your financial security.
We’ve all seen the ads for “free credit reporting” sites. While there are certainly those that are reliable, it’s best to go the legitimate way and obtain a verified copy of your credit report. You’re entitled to a free credit report from the three credit bureaus every twelve months.
Annualcreditreport.com is the only website that’s backed by the federal government and considered the legitimate source for obtaining your official credit report and score. They have been authorized by federal law and are required to handle your sensitive information with care and security.
Obtaining your credit report will help you identify where you stand with your score, what your debts are and how much, and give you a great vantage point from which to formulate a debt management plan. This information is extremely important to anyone trying to get out of debt.
2. Debt Management Sites
Now that you’ve acquired your free credit report and know exactly what you need to pay on, you might want to consider utilizing sites like Get Out Of Debt. This site provides the user with endless information on debt consolidation, payment, credit building, and more.
Information is the key to solving any problem, and debt is no different. Before you decide how you want to begin paying off your debt, it’s important to remember that you may not know certain things about the financial system that might require some extra resources.
Take your time and research all of your options thoroughly. If you want to use any sort of financial services, compare prices with competitors and make sure the service is offering exactly what you’re looking for in terms of consolidation or payment options.
3. Debt Apps
If you owe multiple debts, tracking balances and due dates can become quite difficult. Debt apps make this process easy and accessible via your phone or other mobile devices. There are hundreds of budgeting and debt management apps, so we’ve chosen just a few of them for you to consider trying out.
Tally is an app that lets you put all of your credit card payments in one place. The app will handle your card payments and keep your due dates, so you can focus on other things. The app features excellent security features to ensure your information is safe.
DebtPayoffAssistant is a very straightforward app. You simply enter in all of your debt information, including balances and interest, due dates, etc, and the app will keep track of payments and display your progress along the way. Seeing your pie chart slowly chipped away at can help boost your confidence and make paying off your debts that much more rewarding.
In an increasingly fast-paced and mobile world, debt apps can offer modern solutions to your debt management needs. All of your information is securely stored and managed, and you can be confident in knowing that you’re staying on top of your debts.
4. Debt Consolidation Services
If you have several outstanding balances, sometimes the best thing to do is simply to consolidate them into one lump sum, from which you would only be required to make one monthly payment. This can be especially useful for several small balances that add up to a greater amount.
Debt consolidation can be done in a variety of ways; from utilizing a professional service to taking out a personal loan from your bank or another preferred lender. Whichever route you choose, be sure to only borrow what you need.
Gather all of the information about your debts before contacting a consolidation service. Be sure to get exact balances and attempt to negotiate with the debtors beforehand. If you can lower the amount you owe, you’ll need to borrow less, and therefore you’ll be able to get out from under your debt quicker.
5. Financial Advisors
Financial advisors are excellent resources for creating a plan to get out of debt and stay out. They’ll offer expert advice on your budget, spending habits, and purchases. When you ask for financial advice, be sure you’re choosing a professional service
You don’t want just anyone giving you advice on how to spend your money. Research your chosen advisor’s credentials and experience. Be sure to ask any questions that you may have, and remember that their job is to help, not dictate. If you’re paying for their advice, however, it’s probably a good idea to take it.
The best financial advisors put your needs first and create plans that focus on your specific requirements. Finding an advisor is easy, but finding the right one for your situation may require some extra effort. Don’t be afraid to say no to someone you feel doesn’t meet your standards. After all, leaving your money management up to someone you don’t fully trust can only serve to harm your financial security in the end.