Debt! When compared to many of our grandparents, the word does not seem quite as intimidating now. In actuality, it is a manner of doing business for the majority of people, including large corporations and the US government. Debt is still not a favorable financial situation for many, though. With credit cards, auto loans, and mortgages, one might quickly find themselves in debt and overwhelmed.
Motley Fool, the investment and financial advisors for everyday people, note that it is very possible that consumer credit card debt will reach $1 trillion in 2023. They note the following:
- The total amount of credit card debt in the United States has increased by 15% over the past year, the largest growth in more than 20 years.
- Consumer debt has increased along with inflation, totaling $925 billion in credit card balances.
How To Tackle Your Credit Card And Consumer Debt Problem And Move Forward
We congratulate you if you are in debt and want to get out of it. Most people don’t intend to end up in debt, but a job loss, illness, or other unforeseen situation can lead to massive debt and even potentially foreclosure. Wanting to deal with the problem is a fantastic first move. You are on the road to a better future if you can identify the issue and seek guidance on how to solve it. How does debt relief work in Philadelphia? Here is a brief summary.
Develop A Strategy
Our first recommendation for Philadelphia residents who wish to conquer their debt problems is to develop a plan for doing so. This necessitates some research on your circumstances and spending habits. This tactic is known simply as BUDGET. Not to worry about that word. Many people associate the word with limitations, although it promotes freedom. Freedom to spend your money while being aware that you are progressing.
Initial budgeting requires some effort. You must evaluate your current debt, possibly refinance part of it, consolidate it, if you can, and then create a budget item for a monthly payment schedule. For your budget, you must evaluate all other non-discretionary expenses. These are things, like your water bill or your student loan debt, over which you have little control. You should now focus on the optional things. You have influence over certain budgetary factors, such as your groceries and dining out budgets. Be as realistic as you can when attempting to reduce these.
Combining all of information yields a plan for achieving a better financial future.. A great budget tool we like to use (which is also free) is Mint. You can learn more and try it out here.
Additionally, we advise visiting your current bank or another nearby bank or credit union. We also advise visiting your current bank or another nearby bank or credit union. Many banks will also regularly hold financial education workshops to help you learn more about setting a plan. For these kinds of chances, look through your local Facebook events. Other websites that can assist you with spending reduction, budgeting tools, and planning are NerdWallet or LowerMyBills.com.
Home Equity Line of Credit
A home equity loan can be a great way to tackle credit card debt. With a home equity loan, you borrow against the value of your home and use the money to pay off your credit cards. This allows you to consolidate multiple payments into one easy monthly payment with a fixed interest rate. The interest paid on a home equity loan may be tax-deductible, making this an even more attractive option for paying off credit card debt. Additionally, the loan terms are usually longer than those of a credit card, so you can spread out your payments over a longer period of time and potentially pay less interest overall. This can make it easier to keep up with the payments and get out of debt faster.
However, it is important to consider all of the risks associated with a home equity loan before making any decisions. There is always a risk that you could lose your home if you can’t make the payments on time, so be sure to carefully consider how much debt you are taking on and whether or not it is something you can realistically afford. Additionally, it is important to research different lenders and compare rates to find the best deal. It is also wise to consult with a financial advisor or tax professional before making any decisions.
Paying off credit card debt can be intimidating, but home equity loans can be an effective way of tackling this problem if you make sure you fully understand the risks and benefits. Taking the time to do your research and consult a financial professional can help make sure you are making a sound decision that is best for your financial future.
Ditch the Plastic
We advise getting rid of credit cards or at the very least storing them in a drawer and not bringing them about. You can still use your debit card, but you typically keep much closer tabs on your account while using a debit card. Use the credit card only in dire circumstances. Avoid using them for recurring costs like groceries, gas, or utilities. Because credit card issuers profit from your usage, they entice you to use your card for these kinds of purchases by offering rewards, points, and other incentives. Do not be fooled by it. This is a fantastic article from CNBC on ditching the plastic and saving.
Sell Your Stuff
It is amazing what you can get for some of your used stuff on eBay or Facebook Marketplace. Look at it to get a sense of what people are selling. Think about seasonal ornaments for the holidays. such as blenders or air fryers for the kitchen. What about the things in your garage that you hardly ever use? The list is endless. By the way, you may utilize Marketplace to compare prices on products you might need even when you are attempting to save money. Spend any extra money you earn or have saved on debt repayment. Bankruptcy may be an option too, but only as a last resort due to the long term consequences. See our article on debt and bankruptcy here.
Sell Your Older Outdated Home In Philadelphia For Cash In A Week
Selling their home to 717 Home Buyers is one more option for Philadelphia residents who need to get out of debt quickly. You can receive the money you require in this way without paying realtor commissions, closing charges, or any other additional fees. Additionally, 717 Home Buyers will do any required renovations or repairs. You might be surprised by what we can pay you for your property given that market prices are at an all-time high. Our team can provide more than our rivals and has performed some of the nicest flips in the Philadelphia region. Make a no-obligation offer and appraisal by calling 717 Home Buyers. You will have the opportunity to examine your possibilities for quick income that might be used to pay off debt much more quickly. To save money on your mortgage and pay off high interest debt in the interim, you might have to move in with a friend, return home with your parents, or find a rental.
You have nothing to lose by calling us at 717-639-2164 and learning more about our process here. We take our reputation seriously and are happy to address any concerns you may have about us, the process, or how we may assist you. You can read our reviews here on Google or check with the Better Business Bureau
Get in touch with us at 717 Home Buyers. We hope this article will provide some help for steps in the right direction and we hope we can be a further help in the debt-free living process. Contact us today at 717-639-2164.
About Josh Eberly
A native of Lancaster County, Josh’s roots run deep in his commitment to this community. He especially enjoys helping people find solutions through real estate. Josh is a seasoned investor with experience in the many sides of buying and investing in real estate. Josh enjoys reading, listening to podcasts, digital marketing, and hanging out with his family. Feel free to connect with him here: https://www.linkedin.com/in/josh-eberly/