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Debt Free Solution
Find out about a debt free solution to your debt problems.
If you are seeking a debt free solution for high monthly debt payments, you aren't alone. Unfortunately, missing even one monthly payment can have costly consequences. In what many consumers describe as a spiraling effect. High interest rates and low required minimum monthly payments can make a debt payment plan difficult and sometimes impossible. To calculate what it will take to pay off your balance, use the calculators at www.moneymanagement.org/FinancialTools/.
Helpful debt free solution tips from Money Management
When your debt free solution is in place, take some proactive steps to assure that the situation doesn't recur. The most common catalysts to payment problems are medical expenses, layoffs, divorce and overspending. Based on this knowledge, there are a few simple things you can do to avoid future problems.
- Obtain adequate insurance. In addition to required insurances, such as auto coverage and home owners insurance, health insurance is a must. In fact, research has shown that more than 20 percent of bankruptcy filers state medical expenses as the problem.
- Establish a savings cushion. Three to six months living expenses in an accessible savings account may make the difference between a minor financial setback and a serious financial problem.
- Watch your debt ratio. According to the Federal Reserve, consumer debt climbed to an all-time high of $1.7 trillion last year. Aim for your monthly debt obligations to equal no more than 20 percent of your take-home pay.
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