Dealing With Debt
In spite of the many options available for paying off debt, taking the first steps to a debt-free life can be a challenge in itself. So whether you are trying to improve your money management, having difficulty making ends meet, want to lower your monthly loan payments or just can't seem to keep up with all of your credit card bills, here are some first steps to consider:
· If there’s equity in your home, consider refinancing your mortgage to pay off your debt.
· Make sure you understand the pros and cons of debt consolidation before committing yourself to this option.
· If you’re beyond any of the above steps, seek the help of an attorney for bankruptcy consideration, and/or a local not-for-profit for credit counseling.
· Once you pay off your debts, be sure to live within your means and use credit cards sparingly to avoid a similar situation in the future.
Read more on consolidating and paying off debt.
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In July 2009, the Federal Reserve reported that revolving credit use (primarily credit cards) dropped by $6.1 billion on an annualized basis. The increased popularity in debit cards can be attributed to Americans being more careful about how they spend their money during the recession. Using your debit card for necessity purchases, such as food, clothing and gasoline, and saving your credit card for larger purchases only, may help you understand how and where you spend your money. Read more on using credit cards.
All around the country, CPAs volunteers are offering free and informative financial literacy events. To find out when and where the events are happening in your community, visit the In Your State section of this Web site.
Free financial information and tools to empower 25-34 year olds to take charge of their personal finances and live within their means.
