17 Jan 2017   /   0 comments

How to Pay Off Debt

Paul

If you are interested in improving your financial situation, you may be wondering how to pay off debt since it can be a very intimidating task to tackle. A majority of Americans struggle with debt and wish they could just make it go away. debtWe would like to help you come up with a debt payoff plan! It’s true, we are not a personal financial planning business but with our 25 years of experience in the lending industry, we have picked up a few tips over the years. Additionally, we try to do the research for you so you don’t need to. Here, at TFC Title Loans, we like to help our customers in any way we can, even if it doesn’t directly relate to our business. It is for this reason that we have been expanding our website to include numerous resource pages that address many questions our customers have had over the years regarding finances, vehicles, and title loans.

You have probably come across this page because you are currently struggling with some debt whether that’s credit card debt, student loans, or personal loans. It can be extremely difficult to get debt paid off but if you are able to do it, the benefits that you will receive by doing so will be immense. Your credit score will automatically go up if you pay down a substantial amount of your debt. You won’t feel as burdened as you feel when you know you owe a lot of money. The outcome will be worth the hard work. But we want to make it a little easier on you by giving you some practical steps to make it happen.

Since we opened in 1994, we have been passionate about customer service and consumer education. These are the exact characteristics that have brought thousands of customers to us for their title loans over all other lenders. This article is meant to educate and equip you for paying off your debt so you can breathe a little bit easier. However, if you have found this page because you were looking to get a title loan, then please get started by filling out an online application or by giving us a call today!

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How to Pay Off Debt

  • The first step you need to take to get out of debt is to stop getting yourself further into it. That means stop using your credit cards and don’t open any new accounts. Hide them if you need to or cut them up. One of the more fun ideas is to freeze your credit card in a block of ice. That way it is impossible to use it in at any random moment but you aren’t destroying the card by cutting it up, making it impossible to use in case of dire need.
  • Save up a little money first before paying down the debt. Even if you can’t get a full thousand dollars saved for an emergency fund, gather only $500 and put it in the bank. That way you won’t rely on your credit cards if an emergency was to come up.
  • Next, sit down and analyze what your debt situation is. Look at the amount that you owe, the money you make, and try to assess how you might be able to tackle your situation.
  • Separate all your debt into different categories. The most common categories for debt are consumer debt, education debt, auto loans, mortgage debt, and collections. Then, when categorized, you can prioritize which needs to be paid off first. It’s a good idea to pay off the debts with the highest interest rates first so you can save as much money as possible.
  • Analyze your available resources. Compare your income to your debt and see if there is anything you can do additionally to improve your resources to pay off debt. Can you tighten your budget at all? Or can you get a second job?
  • After doing all those things, you should have a much better grip on your situation. You may need to analyze whether you can succeed or if you need to take some alternate ways out. If it seems like too much to handle when comparing your debt to your resources, then you can consider some helpful debt-relief programs.
  • Now put your plan into action, paying it off in the order that you prioritized it in. Always do the consumer debt first since it usually has the highest interest rate. If you need a bit of a motivation boost, then pay off the smallest balance first because a minor accomplishment is always very encouraging!
  • When you are nearing the end of your debt payoff, start planning for life after debt. Make plans to stay out of debt and create a solid savings for retirement.

Hopefully, you feel more in control of your debt now and feel ready to start paying it off. Continue to search for little ways that you can motivate yourself to stick with your plan. If you have any unanswered questions, then you ought to give us a call right away. We have plenty of customer representatives standing by who can answer them. However, if you would like to obtain a title loan from us then fill out our online application straight away!

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