How to Stay on Track While Paying off Debts
There may not be a better feeling in the world than having the ability to pay off debts. Getting your finances in order is the first step in determining how much debt you can afford to pay off and how quickly you can do so. Sometimes it’s valuable to consult with a debt defense attorney in Houston for advice on keeping the creditors away as you work to reach your goals. When you have a solid and realistic plan in place, it will be much easier to stay on track and slowly chip away at any amount of debt you have, and avoid a lawsuit defense in the process. Here are some tips to help you throughout your debt repayment process.
Figure Out How Much Extra Income You Have
Once you’ve figured out how much money you make every month, and how much money you have to spend on necessities each month, you can see how much extra money is leftover. When you know how much money you have to go towards paying off debts, you can analyze the different types of debt you have. At this point, it may be best to look at all of your debts at once and consider visiting a debt defense attorney if the situation proves to be too complicated to plan on your own.
Factor in Various Interest Rates
One of the first things to consider is the interest rates tied to each type of debt. In some situations, it may make sense to pay off one type of debt as soon as possible. In other cases, you may want to spread out the debt repayment among multiple types of debt to lower them all at the same time. Credit cards generally have a higher interest rate than even a mortgage loan or student loans. You have to look at both the short-term and long-term situation when working on reducing your debt.
Set Goals and Track Progress
The best bankruptcy lawyers in Houston will help you set goals for repaying your debt in order to prevent having to file for bankruptcy. Set a targeted date for paying off a particular credit card or a loan, and make small goals along the way. Various factors can throw your plan off course, but as long as you track your progress frequently, you’ll be in a better position to stay on track.
Bryeans & Garcia, PLLC is here to help you position yourself in a better situation financially. Our bankruptcy lawyers in Houston and Ft. Worth work with you to find the best solution for your debt, and consider filing for bankruptcy as a last resort. Everyone’s situation is different, so we take the time to learn about yours and your needs. Be sure to contact us today to set up a free evaluation to get back on the right track with your finances.