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When inflation rises so can personal debt. If you’re struggling to make ends meet lately, you’re not alone. In the past year or so, the cost of living has risen significantly due to inflation. The prices of gas, groceries, rent, and clothes may all be higher than they were in recent years. This can be challenging for many Americans. This is perhaps especially true for owners of small businesses.
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You are at risk of entering the debt cycle if your income remains the same but life gets more expensive. This factor can be bad news for people who live paycheck to paycheck or who lack discretionary income. The good news is that there are certain precautions you can take to manage your debt when inflation starts rising.
You can choose different bill payoff strategies, lower your interest rates, and minimize spending habits. Learn more about how to manage debt when inflation is rising in this article.
Change How You Pay Your Bills to Manage Your Debt Better
Not paying your credit card bills on time is called consumer delinquency. This metric is on the rise due to inflation. Make sure you pay your debts on time each month to avoid extra late fees or higher interest rates.
One of the best ways to avoid late bills is by setting up automatic withdrawals from your bank account. To ensure you’re not surprised when the automatic payments are removed each month, keep a calendar with alerts on your computer or phone.
By planning your spending better, you can manage debt when inflation rises.
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Lower Your Interest Rates
If you have a good track record with your bank, asking them to lower your interest rates could work out in your favor. Many people believe they can’t do this, but banks are incentivized to keep you as a customer and avoid seeing you go into debt. Even negotiating small changes in your interest rates could make a significant difference over time.
You also may be able to transfer high debt on one credit card to a 0% balance interest transfer card. Those introductory offers with little to no interest rates usually last one to two years, and you can take advantage of them if you’re struggling with your debt.
Don’t be shy when it comes to asking companies about lowered payment options. You can negotiate other monthly bills, like your internet, utilities, or phone. If you can find competitive rates from other companies, they may match those prices and give you a better deal.
Minimize Your Spending to Keep Your Debt in Check
Sit down with your bills and look at where your money is going. You can’t avoid paying for some things, such as rent, groceries, or utility bills. But there are extra items that you don’t necessarily need, like streaming services or paid apps on your phone.
You could also minimize your spending habits by switching to a cheaper phone plan, using coupons at your local grocery store, or taking public transportation some days instead of driving. Don’t cut out the things in life that bring you joy, but try to be more mindful of your expenditures.
Make More Money and Pay Down Debt
Even if you can’t find a better-paying full-time job right away, there are plenty of ways to boost your income during your free time. You can sell items you don’t use anymore or work for a driving service. There are many options for making extra money on the side, especially if you need temporary help with your debt.
Apply for an Online Car Title Loan
People who struggle with debt may not be able to qualify for traditional bank loans. When an unexpected event happens, and you need money quickly, finding solutions can be challenging. You may have to find alternative solutions if inflation makes it impossible to cover the current cost of living in your area, or if you live paycheck to paycheck.
People with poor credit can apply for online title loans using their vehicles as collateral for money. Because your car serves as collateral, the application and approval process can be streamlined. Qualified borrowers can continue driving their vehicles as they usually would if they make their payments on time.
You can learn more about online car title loans by applying online with 800LoanMart, and speak with a title loan agent today.
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