“Debt Reduction Plan” is a perfect phrase for a simple reason. There’s one scary word being “debt”, and the other two are motivating unless the “reduction” comes after income and the “plan” comes after “get rid of you”.
Barring those extreme examples, having a debt reduction plan means you have an action plan that will put you on a debt-free journey. There are many debt reduction strategies out there, but we decided to “pick the brains” of the experts on our team and get some beginner debt reduction tips that will help you start your planning.
What is Debt Reduction?
It sounds like a fundamental question, but it’s a great starting place because debt reduction is more than one thing; it’s a combination of ideas. You can reduce spending, budget, refinance existing debts, diversify income streams, and so much more. There are many debt reduction methods but understanding the core of what you want to do is essential. Talk about it with your family, and you have the starting line to your debt reduction plan.
Debt Reduction Calculator
We have seen many people open up a blank spreadsheet and work out the formulas and formatting to make their debt reduction plan make sense, and it can be a nightmare. Fortunately, we live in a time where if you think of it, some smarty-pants person has already created it online.
One such, or team of, smarty-pants have created this handy debt reduction calculator that allows you to enter all the different forms of debt you may have and see how much you need to pay off each month to get out from under that debt cloud.
We have a mortgage action plan calculator on our website if you are looking for specifically mortgage reduction.
Having these figures from the debt reduction calculator will let you know how much you need to set aside from your earnings, save, or even earn from a side-hustle or second job.
Beware of the small fees
A universal debt reduction tip from all experts is to be very wary of those small fees. They mean that small fees are service fees, credit card fees, or “cup of coffee” purchases such as another television streaming service or digital music /podcast subscription. These small fees can add up to a huge problem and can impact any debt reduction strategies.
It may be time to go through all these “small fee” services and see what can be cut or consolidated.
Debt Reduction Services
We would be remiss if we didn’t bring up this essential service. For starters, it is one of many things that Credit Connection excels at, but also because we want you to know that there is help out there for you if you need it.
Suppose you are looking to become debt-free and live that #lessdebtmorelife lifestyle, then we can also help. A quick Google search can put you in contact with several debt reduction services that can help you with everything from budgeting to refinance. You can get started with us today by clicking here.
Whatever you decide to do to get started on your debt reduction plan is only the first step to a more fabulous and financially secure lifestyle.
Of course, just like with medical articles you might be reading in the middle of the night to self-diagnose that thing (hint: don’t do this), it’s always better to talk about medical and financial matters with an expert to ensure that you are getting the best advice for your particular circumstances.
Remember, you got this!