Experts in the financial market recommend paying high interest debt first such as: credit card, personal loans and mainly unsecured debts. If you have money left over after consolidating your debt, you may want to pay off secure debts such as mortgages. Once there isn’t any cash left over from the consolidation loan, proper money management has to be done on monthly bases, to prevent rapidly building credit card debt.
Two, Maximum Three Credit Cards per Household
The fewer credit cards you have – the better! If you are single, there isn’t any reason for you to have more than 1 credit card if you have found yourself once in debt. Cancel any extra credit cards you posses. You will find managing your monthly payments to be easy, because you have fewer payments to make. Depending on the size of the family, the number of responsible adults, and if there is more than one source of income – more than one credit card can be useful, conditioning it as a must.
Don’t Forget about Paying Back the Loan
The consolidation loan you have obtained naturally has to be paid back. When managing how you will spend your income, remember to calculate the loan repayment and any other mortgages or loans you should pay.
Tightening Your Budget
Living a comfortable life is always pleasant, but, not always possible. Save as much money as you can by spending less. Use coupons and buy only what you need. Learn from your debt problem and live a financially balanced life.