Debt is a common problem for many, and can take as much will power and fortitude in handling a crisis situation as weight loss and health issues. Debt troubles can consume individuals, thus prompting the need to get out from underneath the burden, and stay out of it. Does this sound like you?
Start with Your Own Credit Report, Call Creditors, Do some Consolidation.
Start by taking an inventory of all of your debt. Download or send for your credit reports and look them over very carefully. If you find there are errors on your report, such as debt that has been cleared but has not been taken off your report or charges for items or services that you did not purchase, make some phone calls to get them cleared away.
Call creditors and negotiate your monthly payments. Most are willing to work with you, to prevent losing all the money in a bankruptcy. Always get the agreement in writing before sending out the first payment. If creditors seem less than willing to negotiate, move into the next phase.
Loan consolidation can be a great alternative for those in financial distress. Once you have negotiated and can do no more, many companies offer low interest loans for consolidating all your debt (if your credit score is acceptable), and if not, debt counseling agencies are resources that contact your creditors for you. They may be able to renegotiate payment and interest terms that will allow you to make one lower payment for a fee.
If all the above still has you stretched beyond capacity, there are other things to consider. Taking a second job, shutting off the unnecessary luxuries, (such as HBO or kids cell phones), writing down a budget - and analyze every dime being spent. Cutting up credit cards and being frugal in shopping are other ways in which expenses can be cut dramatically. Make a consistent attempt to pay more than minimum on any loans, and pay off the smaller debts first. Do not declare bankruptcy unless it cannot be avoided.
About the Author:
Philip McClarence is an expert on living life Debt Free, debt consolidation and Personal Finance. Learn more including how to legaly get your creditors to cancel your debts by visiting the Get out of Debt guide.
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