If you are deep in debt, it can seem you are stuck with no way out. Fortunately, you can find the end of the tunnel and become debt-free. One thing you should consider doing is hiring a financial advisor. Below are two ways this professional can help you.
Help You Set up a Budget
One of the most important things you should do is to set up a budget that you need to go by. The financial advisor can help you do this. They will ask you for information such as what your expenses are, your house payment, car payments, loan payments, etc. The financial advisor will then ask you what your income is and if you have any other areas cash is coming from regularly.
Once the financial advisor gets all this information, they will set up a budget for you. This budget will show you how much money you can spend and in what areas. One area will be for entertainment, such as eating out. Because you are trying to get out of debt, however, eating out should be rare. You do need to buy things like clothing, getting a haircut, and personal items, so money will be set aside each month to cover these things. Having this budget will allow you to know what you can spend each month.
Help with Debt Repayment
Depending on the financial advisor, they may list your debt by the amount, such as largest to smallest or smallest to largest. They may also list your debt by the interest charge. In most cases, you would need to pay off the highest interest loans first as you pay much more money on these.
If you have a lot of debt, the financial planner may offer to restructure the debt to help you pay everything off faster. For example, if you are a homeowner, the financial advisor will ask you if you have equity. If so, a second mortgage on your home would be helpful as you could use this money to pay off all your debt. In most cases, the second mortgage will have a lower interest rate. Because of this, you can use all the money that you were paying monthly on all your debts to pay off the second mortgage.
Talk with a financial advisor in your area, and they can tell you much more about how they can help you.