Tuesday, June 13, 2017

Debt Reduction Tips For Millennial Families That Maintain Lifestyle

Commonly, the question on most people’s lips when it comes to repaying a debt that you’re way in over your head is to simply make drastic cuts. Reducing debt sustainably and is almost an insurmountable challenge that has a high chance of derailing and getting ugly really quickly. You’ve probably seen the ads online and TV commercials, that offer quick debt relief with a credit card plan, or instant money loans that have obscene high-interest rates. Well, these routes are for the absolutely desperate and designed for a quick relief but no with long-term debt reduction plan; in fact quite the opposite. You shall need to dedicate yourself a plan devised with the help of a few guidelines, because it is possible, to reduce debts on your own without the need to fall further and further into the sinkhole.
Evaluate your position

You must know every inch of the piece of soil you stand on before you jump off it. It’s important that you calculate your debts and income ratio, and factor in the expenditure your household exerts for your current living standard. How much do you spend on daily commutes? How much do you spend on the children and their activities? How much is the weekly shop and have you saved for a rainy day? Bank loan debts are reasonably long term which have low APRs which means you don’t need to include your mortgage loan or student loans into the balance sheet you’ll need to stick to as gospel.

Image source - Max Pixel

Making smart sacrifices
The Millennial generation has shown itself to be more innovative than any other and remarkably resilient to change. You’re in debt, so time to climb into a mindset that is ready for prolonged sacrifice and smart budgeting. Don’t book a vacation this year and instead go on a cheaper domestic holiday such as a camping trip. You don’t want to skip out on it all together because moral in perilous situations will help you keep you and your family’s heads up. Cut down on the weekly grocery shop and instead buy in bulk, food rich in carbohydrates that don't cost a lot such as pasta and rice. Never become stubborn in a situation you do not have control over, consequently, be ready to sell the house should the debt rise above your head. There are new multifamily developments that have floor plans suitable for a young working family. The apartments have 2 to 3 bedrooms and facilities that all homes possess, such as washing machines, dry cleaners, grilling station, etc. The kids will love it, as there are game and media rooms for them to relax in as well as fitness, yoga and outdoor pools for the adults.

Credit - mtlblog

Smart repayment tactics
You should automate your debt repayment schedules after negotiating with the creditors owed, the amount you’ll pay with each payment. This will take care of any backlog risk which increases the interest rate and saves you from having to discipline yourself while juggling other worries. Making multiple payments can become tricky and confusing so you could opt for a debt consolidation loan to centralize your debt payments. The advantage of this is, because of the amalgamation and simplification, the interest rate may be lower than every debt reduction plan you have.

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