San Diego, CA, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Debts can be stressful, especially if they leave you financially disenfranchised to the extent that you can no longer meet your daily expenses. As the country continues to adjust to the realities of financial challenges due to COVID-19, many people are now faced with the option of filing for bankruptcy. Over 80 million Americans have loans that seem to be growing over time. For example, by the end of 2019, an average household owed approximately 6,200 dollars in credit card debt. When student loans, consumer loans, and mortgage loans are considered, the figure can be overwhelmingly large to manage.
If you are struggling with debt and do not know the exact strategy to employ to get a reprieve, you are not alone. Millions of Americans have this problem, and a good number of them do not see the possibility of paying up their loans in the near future. Since nobody ever feels comfortable having to deal with the annoying and repetitive calls from debt recovery agencies, here are a few keys on how to avoid too much debt.
Always Pay Your Installments On Time
Late or missed payments attract very high penalties and fees, which could go beyond $30 depending on the outstanding loan balances or type of credit card you carry. Missing any two payments back-to-back can lead to higher penalty rates and cause a significant rise in your finance charges.
Make Substantial Payments
Many people who've reported struggling with huge debts say it all started with paying an amount less than the expected monthly payment. However small it can be, starting a new month with a negative balance can trigger higher debts and increases the risks of getting into a difficult credit card debt. To avoid all these issues, you only need to be disciplined by spending according to your ability every single month.
Don't Let Your Taxes Put You on the Receiving End
According to the Internal Revenue Service (IRS), $1.76 trillion was collected as a tax on individual incomes while businesses helped net about $390 billion. Since unpaid taxes account for about 20 percent of debts, individuals are advised to prioritize making their tax payments whenever they fall due. If you think you have overdue payments or feel you cannot manage your tax bills, it is advisable to call the IRS and see whether you can qualify for partial payment or if you can ask for an extension.
Be Careful with Car and Home Loans
Everyone has a dream of owning a cool home and driving a sleek car at some point in his or her life, but nothing can cause debilitating debt than buying a car or home on loan. According to the Federal Reserve, the total auto loan debt crossed the $1 trillion mark in 2016, which meant that, on average, every household owed $28,948 in car loans, being a 9 percent increase compared to the previous year. On the other hand, home debt reached $8.5 trillion (an average of $177,000) during the same period. While owning assets such as these is a plus for anyone, buying them using loans has proven to be a risky move. The best way to consider buying a used car is to save up for it, so your debt doesn't exceed your earning capacity.
How Elite Document Management Solutions Is Helping People Remodel Their Finances
At Elite Document Management Solutions, there is a possibility of getting back on track despite the debt crisis you may be facing at the moment. Elite DMS prides itself on giving its customers an array of hope after a period of financial challenges through its tested and proven Debt Relief Programs. By leveraging the unparalleled experience of its financial experts in resolving varied debt challenges arising from different circumstances, Elite Document Management Solutions is perhaps one of the few entities that you can count on a time when you are pressed in the corner.
When you first get into contact with the experts, they carefully review your financial information accurately and with clarity of facts with a view of helping you comprehend your situation before recommending the best proprietary strategy that suits your individual needs. In addition, Elite DMS has a dedicated training program to help customers navigate the often challenging process to realize maximum success.