High monthly debt payments hijack your ability to reach other financial goals by limiting your ability to build an emergency fund, contribute toward retirement, and save to make large purchases. Fortunately, there are proven ways to eliminate many types of debt other than making minimum payments, from organizing debt to getting a title loan. How do title loans work? We break it down below.
Start By Organizing Your Debts
Collect information about your loans and credit cards. Make a list of the outstanding amount, due dates, minimum payments, and interest rates. Add up your total monthly payments.
Put your debts in order from smallest to largest.
Decide How Much You Can Afford to Pay
Consult your budget to determine how much extra money you can afford to pay toward debt reduction. Cut back on monthly expenses by canceling unused subscriptions and streaming services.
If you intend to eliminate your debt within a 12-month period, divide your total outstanding debts by 12 and use that number as your monthly goal. You may not currently have enough income to cover the additional payments. Consider getting a second job or starting a side hustle to fund your debt reduction plan.
Make Extra Payments When Possible
Make your minimum payments as required to help preserve your credit status. Pay extra money towards your smallest debt when you can afford to do so. Even if it’s just $10, small amounts add up to help eliminate debt.
Consider Getting a Loan to Consolidate Debt
Some people get a personal loan to help pay down high-interest credit card debt. Depending on the loan’s terms, certain types of loans could help you replace multiple payments with a single monthly payment.
As you pay off credit cards and loans, resist the urge to raise more debt. Don’t close credit card accounts unless you know you can’t resist the temptation to use them again. Doing so could hurt your credit.
How Do Title Loans Work?
Title loans can help credit-challenged consumers get a loan, even if other lenders have turned them down. If you own a car, truck or SUV, a title loan may provide quick access to additional funds to help pay down debt. A title loan company, like Tio Rico Te Ayuda, helps provide access to loans secured by real property.
With a title loan, you can keep driving your vehicle. The loan company takes possession of your vehicle’s title until the loan is paid off as agreed. At Tio Rico Te Ayuda, we help people in the Pheonix area get personal loans of up to $1,000 and auto title loans of up to $100,000. We accept vehicles of any year and make.
If you are approved for a personal loan or title loan, you could have access to cash in as little as 30 minutes. Apply today to get help paying down your high-interest debts.