Create a Plan to Achieve Financial Freedom in Columbus

April 20, 2021 at 9:30 PM
A woman at the beach basking in the sunshine and ocean breeze. Does consolidating debt help your credit score? Well, yes. It helps that and much, much more.

If you’re struggling to make your minimum payments on unsecured debt, the stress can consume your entire life. But achieving financial freedom in Columbus doesn’t have to feel like an impossible task. Specialized debt relief advisors can help you develop a plan to overcome your debt balance and move into a future where you’re in complete control of your finances. You’re not alone if you feel in over your head with your current debt situation. There are resources available to provide you with expert help and guidance to the future you deserve.

Follow these steps to create a plan for financial freedom. This plan will also help you become more financially literate to help you avoid becoming mired in debt again in the future.

Calculate how much you owe.

If you’ve been avoiding your debts, this first step is often the hardest. Confronting the total balance you owe can - at first - overwhelm your hope for the future. But this number is just a starting point. Once you know the amount you owe, you’re empowered to make substantial payments to drive down the balance rather than struggling to make periodic minimum payments.

The amount you owe is an important figure to bring to the experts at DebtHelp, who may reduce the balance by working with the creditors who lent you the money.

Find out the interest rate on your loan or loans.

The interest rate determines the amount you’ll have to pay back beyond what you initially borrowed. Finding out the current interest rate for your loans is the best way to prioritize when loans you need to pay off immediately versus the ones that are lower priority.

You’ll also be able to calculate how much you’ll have to pay in interest when you only make the minimum payment.

  • 23% interest on a $7,000 loan will create an additional $4,840 of debt over five years.
  • 4% interest on a $14,000 loan will only make $1,470 of additional debt over the same five years.

Rank your debt from highest interest rate to lowest and devote the bulk of your payments to the loans, creating the most additional debt through interest.

Develop a personal budget.

After confronting their debt balance, this is the hardest step for most people to accomplish. If you struggle to make and maintain a budget, you’re not alone. A majority of Americans are anxious about their finances. Luckily, there are plenty of resources available online and as apps to help you track your spending and find places to save.

  • Pocketguard tracks your accounts and spending and helps you maintain savings goals.
  • Goodbudget enables you to allocate your income to dedicated spending categories.
  • Honeydue focuses on couples with shared expenses but separate finances.

Once you have a budget, you’ll know how much you can pay towards your debt every month. It’s tempting to set ambitious monthly payments when you confront your debt for the first time. However, it’s critical to set reasonable expectations early because it may take years to pay off the balance.

Talk to a debt settlement company to fine-tune your plan.

Few people understand the complexities of overcoming debt or have the resources to negotiate with lenders to lower the amount they owe. That’s why getting help from a debt settlement company is the best path to a debt-free future.

Get in touch with DebtHelp to achieve financial freedom in Columbus, OH.

Since 2006, DebtHelp has worked with clients in Columbus to help them overcome their debt and experience true financial freedom. We’re experienced debt advisors who get to know our clients as individuals and develop plans that work with their budgets to pay off unsecured debts over $5000.

If you’re struggling to make minimum payments on what you owe, there’s a better way to achieve the stress-free future you want. Reach out to our customer service experts today.