Options to Profits Trading Your Way to Financial Freedom

Financial Planning – A Brief Description

03.17.2012 · Posted in Wealth Building

If you are finding it harder and harder to simply pay your multiple credit card bills on time, then this would ideally be the time to bone up and start learning financial planning skills pronto. And when it comes to avoiding bankruptcy, one such option you could try is debt consolidation.

Perhaps the simplest method you can use to consolidate debt is to do a balance transfer – this involves transferring every credit card balances onto a zero percent interest card. Many cards will give you 0% APR for six months to a year and this can help you to save money and save money that you would be paying on high interest rates. You’ll want to make sure that the sum of all your balances will fit on the new card. If the new card jumps into a very high interest APR it might not be worth it if you can’t pay your whole debt off by that time. This might be the time to brush up on your mathematics.

When you do the math on your debt you’ll want to see how long the credit card offers this great 0% APR offer. It can vary a lot from card to card so you’ll wan to read all the fine print and make sure you know exactly what you are getting into before you sign up for anything. In some instances you might be able to make use of the 0% APR successfully and pay off your debts, but honestly speaking, this happens far too infrequently. If the latter applies to you, keep a very, VERY close eye on how the money transfer works out, because it might not be worth the effort. You may, in fact, be walking into a trap, a bottomless pit of sorts that is virtually impossible to escape from, a bottomless pit of debts, that is. A high interest rate payment in a year or even six months could wreck your whole debt free plan. Good financial planning does not always require a one-time A-student in Math for ideal results – proper use of best judgment is always more important.

What we just described to you in brief is not the only choice you have, as you can look to other strategies as well. You might want to ask a friend or family member for a loan and then you can pay off your credit card bills at once. Be armed with a pen and paper, even if you are dealing with a friend or family member, because you want every stipulation to be explicitly clear for both parties. There’s a neat twist to this idea – you might want to try soliciting your services instead of paying them back in cash. Another tool you could use would be the assistance of non-profit organizations who could provide much needed counseling for those in serious credit card debt.

There are a lot of other tools you can keep in your shed when settling credit card debt – and now it’s up to you to go online and research.

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