Let’s say you want to buy a house, a car, or something that’s more of a “need” than a “want.” Unfortunately, that something is way too expensive for you to pay for in cash. That’s why loans exist.
Unfortunately, banks and lenders don’t just give you a loan upfront without asking for something extra in return. If you borrow, say, $50,000, you’re going to end up paying interest on that loan and end up owing a few thousand dollars more. If you fall behind on your payments, you’ll likely owe even more in the long run.
How do you avoid owing so much money in the first place? Better yet, what do you do when your debt becomes too much to handle? CNBC’s Sharon Epperson recently covered the many ways one can get into debt and managed said debt without taking on any more. What she had to say could put you on the fast track to financial stability sooner than you think.
Optimizing your existing debt is key if you want to get out of debt without racking up more fees. Taking on more debt when you’re still under heavy debt is the absolute last thing you want to do. After all, if you can’t afford your current bills and loans, why would you risk owing more in the future?