Home ownership comes with additional costs such as property taxes and renovations. The burden of debt can be stressful, so take advantage of these helpful debt reduction strategies right away and start sleeping better at night!
First, manage credit card debt and re-establish good credit habits
The best way to settle credit card debt is to start off small. Start to make the minimum payments on your credit cards with high interest rates and then maximize payments on cards with low interest rates.
“If you have a lot of debt on credit cards and lines of credit – why?”
Five tips to re-establishing good credit habits:
Obtain a copy of your credit report to find out where you stand
Reduce the amount of debt you owe to improve your debt to income ratio
Set up automatic bill payments from your account to ensure you never miss a due date
Be sure to pay more than the minimum amount required
Keep all your balances to a minimum. Racking up big debt can impact your score, even if you pay your bills on time
Once you re-establish good credit habits, you’ll be able to access better financial products at a lower interest rate.
Want to know more about what affects your credit rating and how you can improve it? Read this Global News article: http://globalnews.ca/news/1858868/what-affects-your-credit-rating-and-how-you-can-improve-it/
Second, hire a professional to help you consolidate debt
The goal of a credit card consolidation loan is to make frequent payments at a set amount each month to pay off the credit card debt.
“Mortgage rates are at historic lows. Why not roll that debt into one payment and save yourself some stress and a ton of money?”