Debt happens and most Americans have some debt with much of it not good debt, like mortgage, car loan or student loans, which are good investments. Credit card debt, overdue bills medical debt, and high interest loans are examples of bad debt that wreak havoc, by destroying your credit, snowballing debt without debt collectors hounding daily for payment. With bad debts in your life, some steps you can take and to keep the debt collectors at bay, are given below:
- Better Your Credit Report To Raise Your Score
Your credit score enables getting you out of debt quicker. A low score with few dings on your report, reduces access to decent loan interest rates. You pay more in interest and less on the actual loan amount, taking you years longer to pay it off and thousands of dollars more. With a mortgage, poor credit scores mean tens of thousands of dollars wasted! A free website called Credit Sesame enables remedial measures for your credit score to reach your debt-free goals. In just 90 seconds, Credit Sesame provides access to your credit score, all debt-carrying accounts and some personalized tips to improve scores. You can spot any errors holding you back (one in five reports have them). Make sure your bad credit doesn’t give debt collectors to hassle you. Sign up for free to improve your score.
- Stop Paying Credit Card Company’s Insane Interest Rates
With credit card debt, comes anxiety, high interest rates, fear of entrapment and debt collectors forever camping on your doorstep. But your credit card company doesn’t really care as it gets rich with high interest rates up to 36%. But a website called AmOne helps.
If you owing your credit card companies under $50,000, AmOne provides low-interest loans to pay off all debts and you pay one bill monthly. Personal loans have low interest rates (AmOne rates start 2.49% APR), and you escape debt faster with zero credit card payment this month. AmOne keeps information confidential and secure after 20 years in business, an A+ rating by the Better Business Bureau. Just 10 questions to see what loans you qualify for and without your Social Security number.
- Lower Your Bills to Avoid Missed Payments
With lower bills, there’s little chance of missing payments due to lack of funds and no debt collectors calling daily. But many money-sucking bills can’t be cancelled, like your car insurance bill. Do shop for options every half-year to save serious money and avoid missed payments. A website called Insure.com ensures easy comparison of car insurance prices, after entering your ZIP code and your age, your options are flashed. Using Insure.com, people save about $489 annually.
- Negotiate Payments with a Payment Plan
If in hospital without an insurance policy to your name or if you have not met your deductible yet, but doctors’ bills are very steep. But doctors and hospitals are willing to help you and some medical providers offer discounts if cash-strapped, and are willing to negotiate payment plans. So instead of $500 out of pocket now, you may pay about $83 per month for the next six months. While the debts don’t disappear, a payment plan makes debt payments manageable and will keep debt collectors off your back if you make monthly payments on time.