Pay Off Your Loan: Yes You Can
Get financial guidance to shrink your debt and be secure
Paying off loans can seem daunting, especially if you are behind on payments or can only make your interest payments. The thought of being burdened with debt your whole life is a frightening one but don’t panic there is hope and it’s easier than you think to get out of debt.
There are two basic types of debt, good and bad, the question is, which are you in? If you have taken out a loan for a business or some other potentially profitable investment then you probably have “good” debt. There is no reason to be afraid of debt if you can earn a return higher than your interest rate (actually it needs to be quite a bit higher because you need to pay taxes on any return to your investment). “Bad” debt is money you borrowed to spend on consumption.
If you have credit card balances from clothes, food, electronics, and other leisure purchases then you need to get your finances under control. Some simple tricks are to transfer your high interest balances to a lower interest card or cash in investments to pay off debt. If these aren’t options then there is a simple alternative: budgeting!
A realistic budget that accounts for your daily expenses as well as paying off your loan balances is the best way to get free from debt. You have several options: software budgeting (but this can be pricey), online providers, or a financial adviser (again -expensive!). HelloWallet is a free to start online financial guidance service that provides budgeting, financial planning, and more.
HelloWallet securely downloads financial data, checking, savings, credit cards, loans, and quickly organizes it to give you a comprehensive picture of your finances. By breaking up your spending into categories, you can see where you can reduce costs in order to free up cash to pay down your debt faster.
Keeping track of your debts and money can be confusing, and many people get into worse financial trouble by missing payments. HelloWallet is unique because we allow you to set up payment goals that we automatically update you on if you get behind. We also will alert you to changing credit risks, like if the APR on your credit card changes. Stop letting debt determine your future, take control by signing up for a free 60 day membership.
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