Over Your Head in Debt? Freedom Debt Relief Offers 4 Ways to Start Digging Out
November 13, 2017
SAN MATEO, Calif., Nov. 13, 2017 /PRNewswire/ — As revolving debt – such as credit cards – continues to increase, Andrew Housser, co-founder and CEO of Freedom Debt Relief (FDR), offers four signs to spot debt that’s becoming unmanageable.
“The large amount of debt these households are carrying is a caution,” says Housser. “Owing that amount, with average interest rates on credit cards more than 16.7 percent, is unsustainable, especially when median household income is just $57,617.”
Most people don’t realize they’re over their heads until it is too late, Housser says. Trouble signs include being unable to make minimum payments, getting calls from collectors or juggling credit cards to pay for daily necessities or other debts.
Housser recommends four steps to begin digging out of debt:
Freeze spending. Buy only what you need, without credit cards. Use every remaining dollar to repay debt.
Prioritize. Pay secured debts such as home and car first.
Be systematic. Pay all you can on the highest-interest debt. Meanwhile, make minimum payments on other bills. After repaying one debt, take on next-costliest. Alternatively, pay the minimum on all debts. Then apply any remaining funds to the debt with the smallest balance. When that debt has been repaid, move to the one with the second-smallest balance.
Get help. Find a part-time job, change your living arrangements if possible, and do not hesitate to contact a trusted debt relief professional.
“Getting out of debt leads to greater financial security, the ability to meet your goals throughout life, and less stress,” Housser says. “Make it a top priority.”