As people strive to survive the economic crises, the year 2010 brings a promising prospect. If you find yourself in a difficult situation, this is the year when you can begin your journey towards debt freedom. Listed below are debt reduction tips that you can start doing from today onwards:
Limit plastic swipes. Since cash is difficult, a lot of people try to pay off their monthly expenditures by using credit cards. However, credit card spending is a dangerous habit since you can incur finance charges. If you are trying to stay away from bad debt, you need to use your credit card discreetly. Before charging any purchase to your credit card, make sure that you can pay your balance in full and on time.
Use a debit card for online buys. If you need to buy from the internet, consider paying with a debit card. Debit cards are not charged with interest rate so it protects you from the risk of bad credit. Furthermore, you can only use a debit card if you have existing funds in your account so it’s a smart way to avoid unplanned spending.
Negotiate with your lenders. You can try to reduce your monthly payments by negotiating with your lender. Explain your financial situation and ask if you can get a lower rate or if some of your fees can be waived. Although not all creditors may oblige to your request, it is always worth the effort to ask. You may be surprised to discover that many creditors are actually considerate to borrowers in need.
Be a wise shopper. Before purchasing an item, shop around first and compare prices. Remember that different merchants sell their products at varying prices.
Consider a balance transfer credit card. If you are juggling with your credit card payments, get a balance transfer credit card with a zero percent interest rate so you can pay off your debts without additional charges.
Check your credit report. Check your credit report at least twice a year to make sure that there are no unauthorized charges in any of your accounts. In case of errors, send a dispute letter to the credit reporting agency that issued your report to have those items corrected.
About the Author:
Suzy Vanstrusen is a credit analyst and a writer on the website EZCreditRepairSolutions.com. She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans. Copyright © 2010