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SolveYourProblem.com
Article Series: Debt Relief & Debt Consolidation
I Want To Get
Rid Of My Debt...NOW!
Drowning
in Debt? Tips and Tricks for
Getting Out of Hot Water with
Creditors
Do you, like millions of other Americans,
feel like you’re sinking in an ocean of credit card debt? Well,
fear not--there are many options for reducing your debt way
before you have to be concerned about receiving notices or
daunting telephone calls from debt collectors. The important
thing to remember is to be proactive in handling your credit
card debt. Unmanaged debt can ultimately lead to lawsuits,
loss of property, and tarnished credit reports.
Here are a few
ideas for managing and/or reducing your debt:
-
Get
in touch with creditors right away. Often times, creditors will
reduce credit card interest rates if you simply ask for
a break. Explain your situation, and let creditors know if
you’re having trouble meeting your minimum monthly obligation.
Many creditors will work with you to arrange a customized
payment plan.
-
Develop
a Budget. While many people dread this very important step
in reducing debt, it can be extremely important in taking
control of your financial situation. Compare and contrast fixed
expenses—-mortgage payments, rent, car payments, and insurance
premiums, for example--with variable expenses, such as entertainment
and recreation. List all your expenses, even those that seem
unimportant. This is an important step in determining your
spending patterns, prioritizing expenses, and determining whether
or not you have additional money to contribute to the monthly
payments on your credit card.
-
Consolidate,
consolidate, consolidate. While debt consolidation is a
sometimes daunting and drastic step, it can be an important
move in the quest to reduce your credit card debt. If you’re
a homeowner, consider a second mortgage or a home equity
loan
to pay off high-interest rate debt. While these loans often
require you to list your home as collateral, remember that
if you start skipping out on credit card payments, you could
easily lose your home. What’s more, these loans provide tax
advantages that are not available with many kinds of credit.
-
Go
to Counseling. Credit counseling, that is. Many credit
counseling organizations will help you come up with a feasible
solution for ridding yourself of debt. You can find credit
counselors on the Internet, and many credit unions, universities
and military bases provide credit counseling programs. Also,
get in touch with your bank, friends, and/or family for a
recommendation.
Some of the services credit counselors provide: Advice on
how to manage your debt, assistance in developing a budget,
and classes and workshops that are geared towards teaching
consumers about money management, credit card debt, and budgeting.
Counselors can also recommend a debt management plan (DMP),
which allows you to make monthly deposits to the specific counseling
organization that you’re working with. Your counselor will
then develop a payment schedule with your creditors that includes
lower interest rates or waives certain fees.
For more suggestions and information on how to manage your
credit card debt, please visit http://www.informedcredit.com.
Click here to discover my current SolveYourProblem recommendation and choice pick for the fastest, easiest and best debt relief solution you'll find anywhere. Get it and reward yourself with more cash in your pocket.
# # # # # Beth
West has an extensive background in public
relations and marketing, with previous management positions
in both the hospitality and software industries. Currently
serving as the Director of Marketing for http://www.informedcredit.com,
she also is working on a freelance writing business. bethwest@cox.net
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