How to Simplify Your Debt
Debt can be complicated, especially if you’re juggling more than one monthly payment. And when those debts have variable interest rates, you can get stuck in a cycle of debt and feel overwhelmed. Fortunately, there are a number of ways to simplify your debt* so it’s easier to manage. Check out our tips below.
The key to knowing how to handle your debt starts with tracking your money — that is, creating a budget. Figure out what your monthly income is and how much you typically spend in a month on necessary bills (rent/mortgage, groceries, gas, etc.) and wants (entertainment, eating out, etc.). This will give you an idea about where you could trim unnecessary spending and create some breathing room for your budget.
Depending on your situation, debt consolidation could be a great choice to help you simplify your debt. Here’s how it works: you take out a personal loan to pay off multiple debts or balances you already have. After paying off the other loans, you only have to work on paying back one loan, which makes things easier. In addition to making payments more manageable, debt consolidation could help you:
Plus, with a history of on-time payments, you can build your credit over time. If you’re considering this option, get an idea of what your new payment could be with a debt consolidation calculator** (and discuss your situation with a Lendmark loan expert!).
Cut costs and pay down debt
Besides debt consolidation, you can try to save some extra money, when possible, to put toward paying off debts. If you have some smaller debts you’re paying off, you can focus on eliminating them one at a time. This can give your budget more flexibility. Consider creating a budget (see above) to determine where you could trim some unnecessary expenses and put them into debt payments instead. Plus, check out our other advice for how to pay down debt.
Don’t take on more debt
Whether you’re still juggling multiple payments or have just consolidated your debt, avoiding taking on more debt — especially variable-rate debt like credit cards is important. By keeping your debt to a minimum, you’ll be able to focus on current balances, make progress toward paying them off, and simplify your financial situation overall.
At Lendmark, we’ll work with you to simplify your debt with a loan that fits your needs. Get started online, or visit a Lendmark branch near you.