Just how expensive — and costly — is your debt?
Here are things to consider when determining your “debt boundaries”. In other words, what may be affordable and what may not, as well as analyzing “acceptable risk”.
- Annual Percentage Rate (APR) no more than 36% is typically viewed at the high end of affordable, compared to Payday and No-Credit Check loans, which can be around 400% APR.
- An APR under 36% but still in double digits, which is subject to change and can’t be deducted (usually credit card debt), eats away your finances.
- Loan length is so long that at the end your total payments exceed the item’s worth (e.g. used cars, rent-to-own furnishings).
- Putting up collateral you can’t afford to lose, such as the title to a vehicle title with the accompanying repossession risk.
- Nothing left for savings to cover emergencies or possibly necessities.
Therefore, when deciding which debt to get rid of first, choose the one which is most harmful to your financial situation.
SettleiTsoft®, the free debt negotiation software can help bring you the debt relief you need. Simply sign up at www.settleitsoft.com to utilize all the intuitive financial management and debt settlement tools which will help you create a workable budget, as well as create a plan to save the funds necessary to settle your debt.
GENERAL: Debt with lower interest rates and reasonable repayment periods are generally the best way to go, particularly with a fixed (as opposed to variable) interest rate.
HOUSING: 25% or less of your income.
COLLEGE STUDENT LOANS: Borrow no more for a degree than you expect to earn after your first year out of school.
CAR LOANS: 5% to 10% of gross monthly income. Loan period should be 4 years or less you should try to do a 20% down payment.
MEDICAL: While generally interest-free, the amounts could put a stranglehold on your finances. If you cannot cover the costs on your own, utilizing SettleiTsoft may be your best solution.
Accessible via the Internet or Phone App, SettleiTsoft replaces the traditional methods of debt settlement with an interactive and transparent debt settlement process that stops harassing collection calls and gives consumers complete control of negotiations as to the terms of their debt settlements and creditor payment agreements.
In addition, the system has the capability of validating that the creditor is indeed authorized to collect the debt; thereby eliminating scammers who falsely claim the right to collect the consumer’s debt.