Reducing Debt and Managing Your Income

by Easton Motors

If you're a loyal reader of our blog, then you'll know this space is chock-full of advice on credit and debt management. We're passionate about talking about credit and how to manage it, because our company is structured to help people improve their credit via automotive financing, and an educated guest is a good guest, and more likely to succeed with our finance program.

One of the biggest hang-ups we see that keeps people from being able to purchase a vehicle with us is debt management. Many people come to us who need to reduce their current debt before we can help them (it hurts people when they're approved for loans they can't afford). Between student loans, medical bills, credit card debt, and living expenses, the bills pile up faster than we can keep up with at times. And, with the rising costs of living in America, it's no surprise that a large chunk of the country's population couldn't afford a small emergency bill if they needed to.

 

So how can we tackle debt when the basics already cost so much?

Removing Excess Expenses

One of the quickest ways to reduce your debt to income (DTI) ratio is to remove excess expenditures. Of course, it can be hard to tell what's excess and what's essential until you put together a list of all your current monthly or quarterly expenses. Once you have a complete overview of your debts, focus on how they're paid, and what type of interest they accrue. If you have high interest credit cards, call your credit card company to see if you qualify for a lower rate. Next prioritize how you want to pay off your existing debt. Are there smaller bills that you could pay off faster by only paying minimums for a short time on larger bills? (While we applaud the desire to pay more than your required monthly statements, sometimes paying off debt that's within reach is a quicker way to show a better debt to income level.)

Taking On Additional Employment or Selling Excess Goods

If you're struggling to pay down your current debt with your current income, and you've already exhausted your options on your current stack of bills, consider whether or not you can take on extra work, like a part time job or hobby that pays (like an Etsy shop). Even just a few extra working hours--like seasonal work--can help clear out debt a lot faster than just your current line of work.

And, when all else fails, consider your assets. Are there purchases you now regret because they cost too much, but you went ahead with them anyway? Are you sitting on a lot of electronics or furniture that would fetch a nice sum on Craigslist or your local want ads? Consider this a great option for some quick cash--and a fast way to clear up home clutter, too!

Have any other ideas, or questions? Contact us today, our team of Finance Specialists are always happy to help! (877) 254-6855

Easton Motors EZ Credit Used Car Blog

Tags

car loans (3) car financing (3) bad credit car financing (1) tax preparation (2) personal finance (12) personal taxes (3) easton motors locations (2) easton motors dealerships (2) used car loans (2) bad credit car loans (3) applying for credit (3) auto lenders (1) taxes (2) financing (3) building credit (3) rebuilding credit history (1) credit score (8) credit history (8) buy-here pay-here (2) faqs (1) in-house financing (1) customer testimonial (2) bad credit (2) car buying tips (7) car maintenance (4) car repairs (3) car safety (5) car traveling tips (6) car driving tips (6) road safety (5) tire maintenance (2) car tires (1) reducing debt (1) money saving tips (4) household tips (3) winter car safety tips (2) winter car tips (2) seasonal tips for cars (1) online safety (2) tires (1) winter tires (1) credit (6) cars (2) new (2) car (5) vehcile (1) bad (5) auto (3) note (3) finance (5) road (1) side (1) emergency (1) kit (1) bank (1) loan (3) years (1) resolution (1) easton (3) motors (3) subprime (1) lending (2) improve credit score (1) increase credit score (1) bad credit score (1) driving (1) focused (1) sales (1) automotive (1) dealer (1) video (1) chat (1) zoom (1) facetime (1) skype (1) for (1) sale (1) car insurance (1) tips for car buyers (1) protecting your car (2) family tips (2) summer car maintenance (2) season car tips (1) seasonal car tips (4) car reviews (1) car design changes (1) car liens (1) buying a used car (3) selecting a car to purchase (3) protecting your credit (1) used cars (2) advantages of used cars (1) new vs used cars (1) trade-in (1) trade (1) wisconsin (1) wisconsin used cars (1) tax (1) refund (1) downpayment (1) promotion (1) easton motors (1) locations (1) community (2) green bay (1) local (2) community guide (2) wisconsin guide (1) sun prairie (1) local guide (1)