Finance & Loans

HOW TO CONTROL YOUR DEBT

In the face of the current economic crisis there are more and more people faced with mounting debts. Credit card companies are charging consumers billions of dollars in late fees and interest charges. So how do you control your debt?

1. Select a credit card that charges the lowest interest rate and get rid of ones that charge a higher rate.

2. Pay more than the minimum payment to ensure faster repayment which means less interest to be paid and better for your credit score.

3. When repaying give priority to loans that charge a higher interest rate. Avoid getting high interest loans such as payday loans and title loans, look for alternative ways to raise the money.

4. If you are charged a late fee or a penalty, negotiate with the card company to have the amount waved off or reduced.

5. Monitor your credit card usage to prevent over spending. Allocate an amount to be spent and keep tab on how much you spend.

6. When getting a mortgage, opt for one with a fixed rate rather than an adjustable rate mortgage.

7. Seek help immediately when faced with credit issues to prevent further damage.