Graduating from high school and moving out on your own is one of the best feelings in the world – until the debts start to pile up and your credit rating starts to fall. Take charge of your debt: the best thing is to pay all of your bills on time, every time. Real life, however, can be a bit more complicated, and you may find yourself having to pay unexpected bills for car repair, surgery, children, or health care. Professional debt management companies can help you negotiate payments with bill collectors and deliver real-world advice about debt settlement issues.
Most of us are in debt: as our income increases, so does our cost of living. About half of all households in America have more than $150,000 in debt. We underestimate what we owe, but professional debt management has tools that can help us to lower our monthly bills. Young people should be very reluctant to get a credit card. You should have three months of living expenses on hand, and a low-limit credit card to use only in case of an emergency. Using a debt management calculator can help people understand why they should focus repayment efforts on cards or loans with the highest interest rates.
The average American worker pays more than $6,000 in interest every year. If your credit card has an interest rate over 15%, you could be paying on your interest for the next decade without touching the principal. You need to focus on overpaying credit cards so that you can get rid of debt that has the potential to expand into frightening sums. If you have a credit debt of $5,000 with 17% interest, you would have to pay $250 per month over 24 months in order to bring your balance back to zero. There are several websites that feature a debt management calculator, but you may want to meet with a financial professional if you are considering declaring bankruptcy.
Before you can pay off your debt, you need to fully calculate your debt. The average American is not aware of exactly how much debt they are carrying. Professional financial counselors reports that most of us owe about 50% more than we realize. Using a debt management calculator can help you figure out how much your monthly payments should be on student loans, credit cards, and health care bills. You want to start off your adult life on solid financial footing: there are many options for college online. Do you want to stay at home and save money on college housing? Do you want to take a year off, take some free classes online, and figure out what you want your major to be before you enroll at your local college?
There are more ways to save on your college education now than ever before: you do not want to incur thousands in loans, only to figure out that you picked the wrong major. You should use a debt management calculator before you attend college. Too many students report that they are drowning under a mountain of student loan debt. Do your research before committing to a college and you should be able to save money on your education. Look for scholarships online and consider your options: you don’t want to find yourself unable to buy a home because of outstanding student debt.
Life as an adult can seem overwhelming, but if you start out on the right foot, you should have no problem building good credit. Pay your bills on time, do not get too many credit cards, and consider your educational options before you go away to college. There are many success stories about people who paid off their debts, but the best path is to avoid incurring debt in the first place. Be careful and have fun saving: that’s what true financial freedom is all about.