Gain control of Debt Now

• Use debit card for all spending to keep track.
• Cut any and all unnecessary spending.

Tip #2: Determine how much is really left over to repay loans and debts

After necessities like food and housing, how much is really available to repay debts? 

Tip #3: Start with the highest interest rate debt

Credit cards may be the highest interest rate offenders–an average 19.1 percent APR!

• Negotiate a lower interest rate with the lender. Propose more favourable financial terms in writing.
• If credit card debt represents the bulk of what’s owed, consider transfer of debt from one or two cards to a new zero-interest card.
• Consolidate all debts into one loan to lower monthly payments owed.
• Lock-in a lower mortgage rate to free up more funds each month.
• Use asset-backed loans, such as those requiring collateral (home or auto), with care.

Tip #4: Free up additional cash

In order to make more than minimum payments, consider sale of significant assets, e.g. automobile, jewellery, etc.:

• Consider a loan from an insurance policy.
• Request a loan from family if possible.

Tip #5: Avoid new financial traps

Compare all new loans carefully, including origination fees, interest rates, and terms:

• Avoid payday lenders (and all super-short-term lenders)–rates can exceed hundreds to thousands of percent of principal!
• Avoid so-called financial advisers or money managers who charge fees for debt counseling assistance.

Tip #6: Visit a no-cost debt counselor service

Citizens Advice or Consumer Credit Counseling Service help to arrange a monthly budget and propose more favourable repayment terms to creditors.