How To Be Debt Free

Without even intending to, you are already in debt the minute that you graduate from college because of the student loans that you probably had to take advantage of. Once you secure a job, part of your entry-level salary will be allotted to paying off these loans. Then comes the credit card offers from different companies.

In order to have a means of purchasing things, you may want to sign up for one or a couple of these cards. Before you know it, you have more debt than you can easily repay because of the ease by which the plastic card can be used to purchase things. It is exactly the ease of access to credit which tempts most people into borrowing more than they can pay back. The result is being in debt even before you can build a solid credit history for yourself.

Most Popular Way To Be Debt Free: Debt Management Plans

The good news is that there are several ways for you to become debt free. If you only managed to acquire a lighter load of debt instead of very serious debt problems, then a solution is to go for debt management.

Debt Free

First, let us compare this with another solution to get rid of debts, which is to take out a debt consolidation loan. When you go online, there are plenty of companies which offer such loans to consolidate your debt. The idea is that instead of paying two, three or four credit card companies, you only have to pay one. The funds that you will get from the debt consolidation loan will be used to pay off your other loans.

At the end, you will only be left with one loan to pay which is supposed to have a lower monthly payment and a lower interest rate. The problem with going for this solution to be debt free is that you may not necessarily have a lower monthly payment and a lower interest rate means that you are paying off the new loan for a longer time frame. Continue reading