Written by Canterbury Law Group

5 Steps to Becoming Debt Free

Canterbury Law Group is uniquely qualified to represent debtors, creditors, trustees and committees in both personal and commercial bankruptcies. The range of services we provide depends on an individual’s or a company’s unique situation but may include business bankruptcy, Chapter 7, adversary proceedings, restructuring, Chapter 11, creditor representation, Chapter 5 claims and Chapter 13.

If you’re debt is overwhelming your life, bankruptcy may be the right choice for you. However, if you’d prefer working towards eliminating some of your debt, we can also help. And, if you’ve already filed bankruptcy, the attorneys at Canterbury Law Group in Scottsdale want to make sure you stay on track and have a flourishing financial future.

The path to becoming debt-free can be a difficult and arduous one. But following these basic steps will help you and your finances.

  • Create a financial strategy. If one of your financial goals for the year is to get a better handle on debt, put together a debt payoff strategy that complements your budget and won’t overextend you financially. Keep track of future financial needs and contribute to a savings plan.
  • Pay off the most expensive debt first. Look at the interest rates of all of the credit cards you use to make purchases and sort them from highest to lowest. By paying off the balance with the highest interest first, you increase your payment on the credit card with the highest annual percentage rate while continuing to make the minimum payment on the rest of your credit cards.
  • Lower your interest rate. You can often lower your credit card interest rates by doing a balance transfer. Shop around and try to get the lowest interest rate for the longest duration (preferably until the debt is paid off completely).
  • Eliminate new debt. As you start to pay down your debt, stop using credit cards until you have your finances under control.
  • Pay more than the minimum. Break the habit of paying only the minimum required each month on your credit card statement. Paying the minimum – usually 2 to 3 percent of the outstanding balance – only prolongs a debt payoff strategy.

Our bankruptcy legal team is ready to represent you in your Scottsdale business bankruptcy case. Call us today to schedule your consultation. 480-240-0040.

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