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.
Analyzing your debt will be a critical step in the right direction. All three credit bureaus have an impact on your credit worthiness, so it is important to get copies of them and make sure each contains correct information. If negative history is haunting you, write letters or make calls, and see about getting those items removed. If something is reported erroneously, don't be afraid to challenge it.
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.
If you have done all you can do and debt remains, call a loan consolidation company. If you can find a company that offers a low interest loan and debt counseling to prevent future problems, you are getting somewhere. There are debt consolidation companies offering to talk to your creditors to lower or take debt off your report. They add remaining debt together and offer to deal with these payments for you. The idea is that you pay them one monthly fee plus a payment that covers the rest of your debt. If they did indeed get much of your debt cleared, this option may be beneficial.
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 Becoming Debt Free, debt consolidation and debt management. Find out including how to legaly get your creditors to cancel your debts by visiting the Get out of Debt guide.
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