Angie Hooten - Hughes Insurance Agency Blog
Paying debt that has accumulated over the years can be really tough. It can also be frustrating to limit your budget just so you can pay off your loans. However, there is no way to get out of debt unless you do your obligation of paying for it. Whether you want it or not, you need to save enough money to pay off a loan regardless if its secured or not.
Luckily, paying of a debt is only difficult but never impossible. Saving enough money to pay for debt can also pave the way to the habit of saving money for the future when all the debt is paid.
Don’t Use Your Credit Card
Credit cards are also known as privilege cards and they run out of use if you are stuck in debt. If you cannot cut all your credit cards in half, you should think of a way to limit yourself in using them. Keep in mind that your credit card is not buying your “FREE” stuff and that you still have to pay for everything on your next statement.
Take Loan from Your Life Insurance Policies
You usually want to do this during emergency situations. In cases where you have so much debt, it can prove to be a crisis. Try borrowing some money from your life insurance cash value. Yes, you’d have to pay for interest but the rates are lower compared to other banks and credit card companies. The lower interest helps you save more money overtime.
Consolidate Every Debt that You Have
A good thing to consolidate your unsecured and secured debts is to pay for it in one go with the help of your bank. Ask your personal banker if you can apply for a loan that can pay off all of your debts at once. This way, you will save money from the interests that your existing loans will generate individually. It’s also more convenient for you as you only have one payment to worry about for the remaining years.
Pay More Money for Your Credit Card Bills
A great feature of a credit card is that you can pay the minimum amount every month to get you by. However, this can also be the reason for your being in debt because of the high financial interests. To avoid these penalties, pay more than the minimum amount of your credit card bill every month when you can.
Being stuck in debt is something that you’d never want to experience. If you find yourself in this situation, you’d want the help of the best insurance company to help you out of it.
At Angie Hooten-Hughes Insurance, we work hard making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (425) 868-1123 or Click Here to request a free quote.