To many people, debt is a four-letter-word! The good news is it no longer has to be! Most Americans have debt in some form, yet the type of debt that directly affects your quality of life is the one that gets – and deserves! — the bad rap.
I will provide you with the expert guidance you will need to reduce your “bad” debt and learn the simple but important techniques that will bring your credit – or FICO – score to the magic “740” number which is the number lenders look for to determine your credit worthiness as a potential borrower.
This is debt that is secured against an asset such as your home, your business, your investment portfolio. Simply put, any asset that can be borrowed against. Other examples of secured debts are home equity and business lines of credit, car, boat and airplane loans, and margin loans, which are loans made against a person’s investment portfolio. These are the types of “acceptable” debt that many Americans live with on a daily basis.
Unsecured debt, such as credit card debt and college loans, is less desirable because it is not backed up by an asset. This means that you have nothing that you can sell to help you meet your loan obligations.
Debt Repayment Plan
One way to take charge of your debt and make it work for you is to create and commit to a debt repayment plan. This plan is designed to track your payment, balances, and interest monthly. Watching your debt decrease and your capital free up for important purchases, education goals or savings, or for a vacation can be exhilarating and is a motivating and powerful step towards financial freedom!