Some Debt-Solution Options

Are you in debt? If only you had a magic wand to wipe away all of the current debt you are carrying, wouldn't it be wonderful? Unfortunately, there are no magic wands or elixirs that will eliminate debt. But there are debt solutions that you can utilize to begin the difficult process of digging your way out of debt. What are some of these options? Let's take a look.

  • One of the most consistent recommendations given by experts is to develop a budget. Take control of your finances by listing how much you earn and how much you spend. List the necessities first, such as rent, food, mortgage payments, clothing, etc., followed by the rest. Now decide which expenses can be decreased or eliminated altogether. Also, make a list of the interest you pay on your credit accounts. Determine how much more you can afford to increase the payments you make on your higher-interest debts. If you can add $25, $50, $100 more per debt, you'll be well on your way to a debt-free life.
  • In order to help achieve your goal of becoming debt-free sooner, call your credit card companies and ask to have your interest rate lowered. If you're severely in debt, and cannot even afford to make the minimum payment, negotiate with the company to reduce your minimum amount. It's better to let them know immediately that you're having difficulty than to have your account turned over to a collection agency.
  • As you're probably well aware, there is currently a home foreclosure crisis that's causing many consumers (and creditors also, for that matter) great distress. If you have a mortgage but can't meet the payments, call your lender and discuss the problem with them. They'll probably be very receptive to your call and will most likely want work out a plan that's beneficial for all concerned.
  • Find a reputable credit counseling organization that can assist you in developing a budget, discuss your finances and help you with creditors. Research a number of candidate companies online, then call them to arrange an appointment. A reputable company will give you the tools and resources you need to maintain a financial plan and debt management solution that works for you.
  • If you have several credit cards, keep the one that you've used the longest and cut up the rest, and resolve to pay for future purchases with cash. Then, leave that card at home so that there's no temptation to use it.
  • Finally, you may have to consider finding a second job. While this avenue may be overwhelmingly unwanted, it may nonetheless be necessary to help you get out of debt. If another job isn't feasible, consider selling items you no longer need or have never used in open marketplaces such as eBay.

Getting out of debt requires thoughtful consideration and sacrifice. Unfortunately, there are often no easy choices. However, if what you owe is becoming more and more a stressful and weighty burden to bear, now is the time to make the hard choices so that you can be debt free and happier that much sooner.

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