Debt is a common problem facing many Americans. When you are serious about wanting to get out of debt, it’s important to look at different options for getting out of debt. You need a plan, some sort of strategy to approach the problem. Don’t just think it will go away on its own. You might not believe it, but you might even be able to use credit to ease your way out of debt. In addition, your smartphone might really be of use as well.
Transfer Your Credit Card Balance
This is an often overlooked idea that might help you get out of debt. Transferring your credit card balances to a no interest or lower interest card will not eliminate your debt but will reduce the amount of interest you are paying and the amount of time it takes to pay it off. This is especially true if you are currently using credit cards with interest rates over 13%. For example, if you are currently paying 19% or higher, you could definitely benefit from transferring to a card with a lower rate. It is important to remember that these offers to transfer balances are often introductory offers so that lower rate is only good for a certain amount of time, usually six months or maybe a year. Just be sure you actually take advantage of the introductory period and if not pay off the debt, at least pay it down to a more manageable amount. If you don’t, then you might end up with an interest rate as high as or higher than the one on the card you just transferred. If you are diligent in making payments more than the minimum during this time, you can certainly save some money.
Use Online Tools
Ok, you have decided to make this a priority and are determined to get out of debt. How do you get started? Transferring balances to a card with a lower interest rate is definitely a good start. From there, you need to formulate a plan and determine realistically what you can pay and figure out how long it will take. One of the best ways to figure out a repayment plan is to use a repayment calculator. This is just one of many free online tools that are available on many websites. Just do a simple search and you will find them. The thing that is so good about these tools is that using the calculator you can see how long it will take to pay off your debt with different payment amounts. That should help motivate you to pay more each month once you see how the higher payments will pay it down quicker which means you will get out of debt quicker.
Shop Smart using Apps for your Smartphone
You already use your smartphone to stay in touch with your friends and family. You may also use it to help you get to where you’re going using GPS and mapping services. Did you know that you can also use your smartphone to save money and get out of debt? More specifically, you can use your smartphone to save money on the things you already buy and by saving money you free up more cash to pay down your debt. How you may ask? There are all kinds of apps available for your smartphone that can help you save money in different ways. One type of app that is especially helpful is bar code scanners such as Redlaser. These apps allow you to scan the barcode of items which then enables you to comparison shop prices and locations of different stores carrying the item you wish to purchase.
Everyone knows coupons can help you save and thus, help you get out of debt. But cutting them out and keeping up with them can be a real hassle. Retail Me Not is a great answer to this common problem. With this app, you can search for coupons and keep track of stores you frequently visit. You can even set up email alerts for deals matching your interests. There’s no more cutting and clipping coupons and taking them to the stores when you shop. They are stored on your phone.
If you really want to take advantage of savings at a lot of stores, you have to have their loyalty cards. And we’re not talking about just for groceries anymore. Now there are loyalty cards for your favorite pet store, auto repair store, the pharmacy, etc. Carrying around all these cards can be pretty inconvenient. This is where Key Ring comes in handy. Key Ring is an app that does for loyalty cards what Redlaser does for coupons. It eliminates the need to carry them around. Instead, they are stored on your smartphone and the savings they provide can help you get out of debt quicker.