Being in debt can send your stress levels through the roof. We understand just how tough it can feel to be struggling with your financial situation. Our Florida foreclosure defense lawyers meet with clients frequently who have not been able to manage their money. The following tips offer some guidance on how to reduce your debt so you may be able to avoid a snowball effect from your financial issues.
If you are worried about how you are going to pay your mortgage while you try to get your debt under control, please call us to schedule your free consultation with our Florida lawyers at the Foreclosure Defense Group.
6 Tips to Reduce Your Debt
Managing your money can seem impossible when you are in debt. The following tips are designed to help guide you through some good practices that may help you reduce your debt and avoid the consequences of poor money management.
#1 Create a Monthly Budget
Creating a monthly budget can be an essential tool if you are trying to reduce your debt. You start by tracking your monthly income, and you can make an estimate if you do not have a steady income. Make sure you calculate your income after taxes are taken out of your paycheck.
Write down all of your expenses, such as your mortgage, insurance, car payments, etc.
See where you can save money each month. Try to eliminate extra expenses. You may want to pull out your bank statements to see where your money is going.
During your monthly budgeting, you may be surprised to find how much money you spend on something that you can cut down. For example, you may find that you spend a lot of money on streaming services you do not use very often.
#2 Don’t Create More Debt
It may seem obvious that you should not take on more debt if you are already in the hole, but it is far too easy to do so when you have such ready access to credit cards. Before you add to your debt, try to work away at what you already owe.
#3 Pay Your Bills on Time
A sure way to reduce your debt is to make your payments on time and in the correct amount. If you chronically forget to pay a bill, you will rack up late fees, making it even harder to manage your debt. If you cannot meet the minimum payment due, reach out to your lender immediately.
#4 Check Your Bills for Errors
You cannot always rely on your lenders to be free of errors. For instance, mortgage lenders often make mistakes that put people on notice for foreclosure. If you see an error, reach out to your lender right away to avoid this causing you more stress than it should. Never ignore a lender error.
#5 Chip Away at Your High-Interest Debts
If you put more money into your loans, try to chip away at the ones with the highest interest rates first. The faster you can pay off a debt with higher interest rates, the less money you will spend to get out of that debt.
#6 Consolidate Your Debt
You may be interested in refinancing to consolidate your debt if you have multiple debtors, such as mortgage and student loans. This is a great way to reduce your debt if you do it correctly. Shopping around for lenders with the best interest rate is essential. You want to end up with a lower interest rate than you had before, which would make your monthly payments lower.
Call Our Florida Foreclosure Defense Lawyers
Our attorneys are dedicated to assisting our clients who have struggled with their finances. If you are having a hard time trying to reduce your debt and are worried about potentially losing your home in a foreclosure, we can guide you through your options. Please call to schedule your free consultation with our Florida foreclosure defense attorneys right away.