The Shadow
ROANOKE — Are you battling with your budget after the holidays?
Many people overspend during the season and accumulating large amounts of debt in the process.
BBB Serving Western Virginia has the following advice on wise budgeting to help build a strong financial future.
These tips include:
Set A – Household Budget
Adjust expenses to “find” extra money, in order to pay down credit card and other debt.
Many reputable computer programs and phone apps can assist in this venture.
Choose A Method
While some experts recommend a snowball mentality, paying off smaller debts first and rolling that payment into larger debts, you may want to pay off higher interest balances first instead.
You will want to pick a method and stick to it, however, for maximum effectiveness.
Know Your Options
If you’re particularly struggling, you may want to ask your credit card company for a hardship plan, which often includes lower rates.
This may indirectly harm your long-term credit, however, so don’t use this method unless you absolutely must.
Many individuals also consider debt consolidation, but that is risky and can both lead to short and long-term negative effects.
Credit counseling is another line of business in this field that can assist consumers in long-term planning to help with debt-related issues.
Stick To The Plan
It can be tempting to spend freely once again as your debt balance gets smaller, but that will only keep the cycle going.
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Please visit www.bbb.org for additional information.
