Now that you’ve started a new year, how are you feeling about the financial goals you set for 2023? Our clients are proof that no matter how challenging it may seem, you can overcome your debt and enjoy life again.
Are you ready to have financial peace of mind again? You deserve to live the life you’ve been dreaming of, without debt.
Whether you’re slowly making progress with your debt goals or maybe fallen off course—you can still get on the path to becoming debt free this year.
Start With A Budget
The basic rule for achieving most financial goals is to create a budget. You’ll need to take a realistic look at your income and decide how much you can put toward your living costs, entertainment costs, savings, and of course your debt.
There are many ways to work a budget. Some people write their expenses down to keep track of spending while others find ways to cut costs (ie downsizing where you live, making more meals at home, driving less, etc). Many people follow the 50/30/20 rule—which is setting aside 50% of your income for things you need, 30% for things you enjoy, and 20% for your savings or to pay toward your debt.
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Get To Know Your Debt Options
In addition to following your budget, you can also look into companies that provide help with debt. One approach is to work with a debt relief company. Typically, these companies negotiate down your debt with your creditors so that you owe less on your total balance due. This approach can help you reduce or pay off your debt much faster and save you more money in the long run.
You could also consider a debt consolidation loan. This option combines your debts into a new loan with one monthly payment—at a lower interest rate. The loan helps organize all your debt in one place and makes it easier to pay off because your monthly payments are lower. However, the total amount you owe stays the same. It could be easier to qualify for debt consolidation with a good credit score.
Checking out credit counseling services could also be helpful. This service helps lower the interest rates on your debts. Again, the total amount owed stays the same. Your monthly payments will be lower, but it will take longer to pay off your total debts—about five years.
If you don’t have a lot of debt to work through, making the minimum payments could be a solution. These are the least amounts you must pay for your debts each month to avoid fees and prevent defaulting. Typically, minimum payments are very low … but interest gets added to your remaining monthly balances. This will ultimately cost you more money over time, and you’ll end up paying hundreds or thousands more than you owed in the first place.
Depending on how much debt you have and your ability to make payments, you could consider filing for bankruptcy. Keep in mind this should only be considered as a last resort, and it’s best to consult with an attorney first. Bankruptcy is a legal filing that allows you to obtain debt forgiveness and build your credit back up. It helps give you a “fresh start” with your debt—but it will stay on your credit report for seven to ten years.
We Can Help You With Your Debt
If you choose to work with us for debt relief, you’ll start by having a conversation with one of our debt coaches. As they learn about your situation, they will work with you to create a personalized debt plan that best fits your financial needs—accounting for your living costs, entertainment costs, and savings.
Once we have a debt plan in place, you’ll make one affordable monthly payment into an account that you control—while our debt coaches negotiate down your debt with your creditors. Any settlement offer that comes through from your creditors requires your approval before moving forward. We’ll then apply the funds from the savings account toward that settlement offer. By staying diligent with this plan, we can help you become debt free in as little as 24-48 months!
You Deserve A Debt-Free Life
We understand how overwhelming and draining (both mentally and physically) it can be to deal with debt. But there’s still plenty of time this year to turn that all around. We can help you feel confident again in planning vacations, going out with friends and family, or rebuilding your savings. Even if you get off track at times, you can still make 2023 the year you become debt free and get back to being YOU again!