3 Steps To Get The Debt Help You Need | - Finance

All it takes today is one catastrophic event, and even the most financially savvy person can be in need of debt help. Here are some strategies and tips that will help in getting rid of indebtedness.

The first step is to be honest about the money you owe. Gather up all your bills and compare them to your income. Don?t leave anything out, either bills or income. Often the best way to prepare this analysis is with a budget worksheet that will enable you to compare your income and indebtedness and determine how much money you?re lacking. Once your have a clear picture of your financial situation, it?s time to consider which of the five most common ways to reduce or eliminate obligations will work best for you. Research each option carefully, because each has advantages and disadvantages, and there may be additional expenses involved.

Consolidating Credit Cards: With this option, a consolidation company offers debt help by working to lower your interest rates with your creditors. The company establishes a payment program between you and the credit card companies you owe by setting up one affordable monthly payment that the company disburses for you to your creditors. One caution with this plan is that consolidators sometimes ask for large up-front fee payments for their services. Ask to see the full schedule of consolidator fees and payments before signing onto a plan like this.

Consolidating Payday Loans: Many people fall into trouble trying to get rid of so-called ?payday loans?, which often carry high interest rates. Like credit card consolidation, payday loan consolidation combines all outstanding loans into a single bill to suit the your budget. Once again, be sure to read the details on program fees.

Credit Counseling Services: Agencies that provide credit counseling will aid you in assessing your financial situation and make recommendations on how to reduce your financial obligations. A counselor will assist you to set up a budget to manage both daily expenses and outstanding bills.

Debt Management Program: If counseling and budget realignment aren?t sufficient, a debt management program may be necessary. Credit counseling services offer debt help by negotiating lower payments, especially lower interest rates, with your creditors. They also will notify all your creditors that you?re enrolled in a debt management program, which will stop annoying and even harassing telephone calls from collection agencies. Your credit counseling service will receive one payment from you each month and disburse it to your creditors according to the negotiated plan.

Do It Yourself: People in critical financial straits often have no money available to pay agency fees. These people may opt for a do-it-yourself plan using the free guidelines, advice and support available today on numerous website. The DIY plan requires a great deal of discipline, along with the fortitude to call all your creditors and negotiate lower payments on your own.

The final step in reducing your indebtedness is to get yourself in a positive financial state. To accomplish this, follow what?s known as the four keys to financial stability: avoid new obligations, curb your spending, increase your income, and learn to live frugally. Committing yourself to a new thrifty lifestyle will help ensure that you won?t need debt help in the future.

Source: http://finance.pubkicks.com/3-steps-to-get-the-debt-help-you-need/546/

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