Debt Management Tips for Single Income Families
Contributed by Gina Mcmullen
Debt Management Tips for Single Income Families
If you are a one income family, you may be juggling more debt than you want; below are some tips for the management of your debt:
Debt Management Tip #1
The first, and most obvious tip for the management of your debt is to stop using your credit cards to the fullest extent possible. Making every effort to spend within your income limits will keep you from getting on a dangerous slippery slop of debt overload.
Debt Management Tip #2
While this is an uncommon debt management tip, I advise against taking out a second mortgage. The reason being is that should you find yourself without a job or with a better job offer elsewhere, you will not find yourself saddled with a house you cannot sell due to lack of equity.
Debt Management Tip #3
The one exception to tip number one is that you might want to take advantage of super low interest rate credit cards to consolidate and transfer your balances. This is tricky because you have to avoid the temptation to charge up the now empty card that you just freed up. Dial your credit card company, close your eyes and cancel the previous card.
Debt Management Tip #4
Take advantage of super low interest offers while you can. That is to say, go ahead and refinance your house if it will lower your payment, but as I mentioned previously, you might want to rethink refinancing and getting cash back. Just refinance to lower your interest rates and you'll be all set. Sure, you'll incur some closing costs, points, and fees, but if you plan on living in your house for another year, you should recover those costs just in monthly payment savings.
