debt relief ideas

Tackling Debt in the New Year

debt relief ideasTax season is upon us and as we crunch the numbers we can get a good understanding how much debt we actually have. From student loans, credit card debt and even medical debt – it can seem overwhelming and something we don’t want to deal with. Once your taxes are finally filed, you may feel overwhelmed with the debt totals but there are some ways you can start to tackle that debt.

Budget your Refund

If you’re lucky enough to get a refund when you file your taxes, it can help you get a jump start on tackling that debt. I’m not saying to get a few things you want or need, but you can take a large portion of your refund and pay off some of those debts. Take the majority of your refund and apply it towards your largest debt. Pay off the largest debts first – that will make the future payments less as you go.

Make a Payment Plan

Either with a professional company or even within your own budget – find the best way to pay down your outstanding debts. Most companies have a way to set up a payment plan that works within your budget. Don’t freak out when you get the total bill in the mail – and while they may try to get you to pay everything up front they will work within a budget if you give them one. If you’re on a tight budget, don’t be afraid to tell them that. Paying off their set minimum payments can set you in a hard place financially and they’d rather you pay off some of the bill each time. Negotiate a payment that works for your budget and try to to stick to it.

Debt Consolidation

If you have a large amount of debt or multiple debts you can always look at debt consolidation. This is working with a company that combines all of your debts so that one payment is actually applied to multiple debts at once. Often debt consolidation can help you reduce the over all amount you owe, but it also makes sure you can apply payments to all of your debts.

Working on paying down your debts is the first thing you need to do to help get your out of debt. Even if you do a small payment each month, each one helps get you closer to your goal. Stay within your budget and keep working on paying down your debt and in no time you’ll be debt free.

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