James H. Monroe, P.A.
Call Us For A Free Office Consultation 407-917-4147
No One Should Face Crushing Debt Alone
Practice Areas

Eliminating debt

Many Florida residents are interested in getting out of debt or controlling how much debt they have, but doing so is not always easy. If someone has a large amount of credit card debt and are only making minimum payments, it can make paying off cards seem to take forever. However, with a few organizational changes and adjusting the way that someone spends their money, most can get out of debt and regain control of their finances.

One of the first things that someone trying to get out of debt should do is to list all of their debt, along with how much they owe and what interest rate is associated with the debt. Once this is done, people should contact their creditors to see if they can get a reduction in their interest rate. Having a lower interest rate can reduce the amount of money that someone has to pay back in the long run. If an interest rate reduction from a creditor isn't possible, another option is to move credit card debt to another card or take out a personal loan with a lower interest rate.

The next step is to create a budget that cuts out unnecessary spending. This isn't always possible, but the less money that people spend on frivolities, the more money they have to throw at their debt. The faster someone pays off their debt, the less they will end up paying because less interest will have accrued.

If someone has more debt than they can manage, they may choose to file for bankruptcy. Filing for bankruptcy can eliminate most or all of someone's debt. A lawyer could explain what is involved in filing and help someone through the process.

Source: NDTV Profit, "11 easy steps to get out and stay out of debt", K. Ramalingam, July 31, 2013