Tips for Reducing Debt

Posted: Wednesday, July 25th, 2018

Figuring out how to get out of debt can be challenging, but Green Light Auto Credit is here to help. Start by looking at your budget to figure out how much you can spend monthly to pay off your debt. Whether you’re paying off a car loan or have high credit card payments, you can find out how to reduce debt today.

Debt Reduction Planning

Follow these steps to help get out of debt:>

    Calculate Your Debt – Figuring out how much you owe total can help you decide what you can afford to pay on a monthly basis.
  1. Create a Budget – Add up your monthly expenses and subtract them from your monthly income. Be sure to figure in car payments, insurance, and the cost of gas into your expenses. You can then use the amount left over to pay down your debt.
  2. Green Light Auto Customer showing Thumbs up in front of new car
  3. Develop a Plan – You’ll want to pay off the debt with the highest interest rate first. That ensures you’re reducing the amount of overall interest you’ll have to pay. Wondering which payment type can help you stick to a budget? You’ll always want to pay with cash you have. Using a credit card to pay off debts will only compound your interest.
  4. Speak with Creditors – If you’re paying a high interest rate, you may be able to negotiate better terms with your lenders. Consider refinancing your car loan or moving your credit card debt to an provider that offers a lower interest rate.
  5. Follow Through – The best way to keep paying off debt is to keep up with payments. Avoid unexpected expenses and taking on additional debt and you’ll see your credit score go up.

Visit Green Light Auto Credit for More Bad Credit Advice

Whether you need a low interest car loan or advice on paying down debt, Green Light Auto Credit is here to help. Apply for financing today to find out how much you can save on bad credit car financing.