REPORT #1702
"See if they can work with you and lower your minimum payments, they can also try and lower your interest rate."
Bria Hutchinson
Financial Advisor
Waddell Reed
NEGOTIATING YOUR DEBT
CREDIT CARDS: Financial experts agree there has never been a better time to get rid of your credit card debt. Banks fear upcoming loss of payment because of expected job loss and this is causing credit card interest rates to skyrocket. Getting rid of credit card dependency can be difficult. It's easy to pay minimum payments for years, but that may not be the smartest thing to do. Get on the road to debt freedom by creating a budget. The first spending area that's easy to cut back on is entertainment and frivolous expenses. Also, get rid of the "keeping up with the Joneses" mentality. If you're having trouble paying down credit cards in big chunks try paying weekly. Your credit card company will accept money any time you want to send it.
CONSOLIDATING: Consolidating credit card debt can be a great way to reduce your monthly bills, which will save you money over time. By consolidating your credit card debt, you may even be able to reduce your debt faster. If you have serious debt problems, you might consider seeking the advice of a debt consolidator. A professional debt consolidator/lender will be able to discuss your options, and can help you to decide which debt reduction plan will work best for you.
CHOOSING TO BUNDLE: Convenience is a major appeal of credit card consolidation. But ease doesn't automatically translate to savings. Be sure that the costs of the consolidation loan will really be less than what you're already paying to various creditors. For many consolidation-loan candidates, their current credit problems mean they won't get the lowest available interest rate. Plus, rates can be bumped up when there is nothing to secure the loan (such as your home). Calculate interest and fees on all your existing accounts to determine the total of the payments you now make. Then compare those amounts with the consolidation loan numbers to make sure it truly is a better choice.
SMART WOMAN CONTACT:
Bria Hutchinson
Financial Advisor
Waddell Reed
bhutchinson@wradvisors.com
