Salem Debt Reduction
Accumulating debts is never a good thing. Although the feeling you get as you receive your purchased items or properties is euphoric, the consequent responsibility to pay various accounts can be overwhelming. As you go deeper down the increasing-debt hole, you will need the service of a debt reduction specialist.
We, at Optimal Debt Solutions, understand that no matter how many guides you’ve read, sometimes it’s just so hard to make progress in reducing your debts. Your problem may be an ineffective payment strategy or simply the addiction to getting more debts. Whatever it may be, we are here to help.
Our specialists can help you take practical steps to reduce your debts and to get out of them eventually. Our goal is to help you see results as early as possible while ensuring that the financial management skills we teach you will be with you for a long time, if not permanently.
Do yourself a favor and start your journey towards financial freedom today.
Contact Optimal Debt Solutions at (313) 488-3144 for a free initial consultation with a debt reduction specialist in Salem now.
Reduce Your Debt Payments
If you are aiming for financial success, reducing or maintaining your debt level is one key factor to focus on. It doesn’t matter whether you are a millionaire or a mere minimum wage earner; debt reduction is something you should learn to achieve financial freedom.
The following list shows some of the things you can do to reduce your debt payments:
1. Negotiate with creditors. You should get a list of all your creditors and how much you owe them. You can do this by getting a copy of your recent credit report and billing statements.
Once you have the list, figure out a way on how to pay each of your creditors. Then, call each of your creditors, informing them that you are willing to pay your debt. However, make sure that you already calculated a payment that’s within a workable budget before making the call.
Your credit card issuer can offer you a hardship plan that will effectively reduce your debt payments or interest rate within a certain period. However, if the customer service representative says no, do not argue with him/her. You can always ask to talk to their supervisor and make the same request.
If you reach an agreement, be sure to put it into writing before making any payment. Preferably, the document should contain the company letterhead.
2. Consolidate your debts. To reduce debt payments, you can also combine all your debts and pay them off with a debt consolidation loan. This will allow you to pay a much lower monthly debt payment.
You will have to average the interest rates of all your debts and look for a loan that has a lower interest rate than your current average. Once you qualify for the loan, you can use it to pay all your existing debts. You can then focus on paying only one monthly payment for that loan.
Keep in mind that in consolidating your debts, debt consolidation loans are not the only option. Personal loans, home equity loans, or cash-out refinance are also worth considering.
However, beware of loans that offer lower payments by extending your payment period. You will just end up paying more interest at the end. Additionally, carefully consider what you’ll offer as collateral. Right decision making is critical, especially if you’re considering making your house as collateral.
3. Transfer your balances. Often, if you managed to maintain a good credit score, you’ll have a balance transfer credit card that has a lower interest rate than the other credit cards you have. In some cases, the introductory interest rate can be as low as 0%, enabling you to make interest-free payments on your debt within the introductory period.
You have to remember, though, that transferring balances usually come with a transfer fee. The fee may then decrease your anticipated amount of interest savings.
4. Filing for bankruptcy. Unfortunately, even with lower monthly payments, there are just some instances where paying your debts is just too much to accomplish. When this happens, you will have to file for bankruptcy.
Under the law, filing for bankruptcy requires you to present an income-debt comparison and to undergo credit counseling.
5. Get professional help. If we are honest, there are just some things that we can’t do properly without the aid of the experts. Debt reduction is quite frankly one of those things. Professionals are just much better at handling these issues with their years of experience and acquired knowledge.
If you find yourself overwhelmed with debts, do not hesitate to contact debt reduction specialists. Optimal Debt Solutions offers free initial consultation in the entirety of Salem.
Our specialists can give you valuable counsel on how to manage and reduce your debts. We can also negotiate on your behalf for lower interest rates and monthly payments. Additionally, hiring us would mean attaining the ever-important money-management and budget-making skills.
Contact Optimal Debt Solutions at (313) 488-3144 for a free initial consultation with a Salem debt reduction specialist now.
Get Out of Debts
Getting into debt can be tempting. It’s easy and often fun to do. However, spoiling yourself too much or not managing your debts well can lead to overwhelming debts that will leave you struggling with the payment. The debts you accumulated in just a few months may take you several years (or decades) to pay.
The following are some of the steps you can take to start gradually reducing your debts:
1. Don’t add more debt. This won’t exactly get you out of existing debts; however, stopping your accumulation of debts will save you from future additional payments to worry about. Remember, too, that adding more debt will waste all your efforts to reduce your debts. You can avoid acquiring more debts by cutting up credit cards or freezing your credit.
2. Increase monthly payments. The more you pay every month, the more you can save in terms of interest rates. If you pay less or just the minimum every month, the longer it will take for you to fully pay off your debts. This will then lead to the exponential growth of monthly interest charges throughout the payment period.
3. Build your emergency fund. You may be thinking that instead of building an emergency fund, the money could instead be used to pay your debts. After all, your goal is to get out of the misery brought by debts. However, an emergency fund will save you from falling further into the pit of debt; if ever emergency expenses present themselves in the future.
The ideal amount of an emergency fund is around six to twelve months’ worth of living expenses. However, you can always start with at least $1,000 or whatever amount you can set aside for savings.
4. Choose a debt to make big payments for. Paying the minimum for all your debts and gradually increasing all these payments will give little progress in your debt level. On the other hand, picking one account to focus on, making big payments for it every month while making the minimum payment for all your other accounts will give you better progress.
Do this until your chosen debt is fully paid off. You can then choose another account from your existing pool of debts and do the exact strategy again.
5. Create a comprehensive and effective monthly budget. With a detailed budget, you can better manage your money. This will allow you to cut some unnecessary expenses and use that saved money for paying off debts. The more money you allot for debt payments, the faster you can free yourself from the burden they cost.
6. Withdraw from your retirement fund. If your debts are already too much, you may look into the possibility of withdrawing from your retirement fund. However, you should keep in mind that if you’re not at least six months from turning 60 years old, you will face early withdrawal penalties and additional tax liability. Additionally, if you finally retire, your savings will be short from the interest, dividend, and capital gains you should have earned with the withdrawn money.
7. Cash-out your life insurance policy. Your whole life insurance policy may have accumulated some cash that you can direct to paying your debts. However, this is also risky with the chance of getting tax consequences. Additionally, borrowing from your life insurance can affect the death benefits of your beneficiaries.
8. Work with the experts. Debt reduction specialists can always help you get out of your debts. Here at Optimal Debt Solutions, we offer valuable services in the form of counseling and negotiation with your creditors on your behalf.
Although we can’t make your debts vanish overnight, we can help you get lower interest rates and use effective strategies to get rid of your debts. We will teach you how to manage your debts properly and what appropriate tactic to employ when it comes to debt payments. With the knowledge and experience of our Salem debt reduction specialists, you can rest assured that sooner or later, you will have the financial freedom you want and deserve.
Best Salem Debt Reduction Specialists
You should never let yourself get drowned in the number of your debts. If you are experiencing any struggle in paying your debts off, do not hesitate about getting help from the professionals.
Optimal Debt Solutions has a team of debt reduction specialists serving in Salem, MI. We are always ready to help you clear your debts and relieve you of financial stress. As you begin working with us, we will teach you effective and practical steps to reduce your debts and to steer clear of unnecessary purchases.
We aim to help each of our clients become financially literate and be good debt managers. As we help you ease out of your debt responsibilities, we long to instill in you the financial principles that will prevent your return into the bottomless pit of debt.
Wherever you are in Salem and whatever problem you have that led to your accumulated debts, Optimal Debt Solutions is more than willing to help. Get started on having financial freedom today and work with us.
Your financial status plays a significant role in how your current and future life will turn out. A huge amount of debt is never a good indicator of financial wellness. Learn how to reduce your debts with Optimal Debt Solutions today.
Contact Optimal Debt Solutions at (313) 488-3144 for a free initial consultation with a debt reduction specialist now.