Having a colossal amount of debt is frightening. Many of us feel overwhelmed that we owe so much and don’t know what to do or where to turn for help. It’s time to get educated on how you can get out of debt and into a financially free future where you don’t have to worry about those collectors and bills every month. How to do it? Read on for out top 5 tips to help with debt.
One – ?Remain focused. Remember, this is debt we’re talking about, not a decision on whether to launch a nuclear warhead. This problem can be solved rationally and methodically without any extra fuss or drama. There is no need to be constantly worrying about it. Millions of people are in the same situation as you, but you have the advantage over them by educating yourself on how to get ahead of the pack and get rid of debt once and for all.
?Two – ?Look at the big picture in black and white. This means right now, yes right now, go to your desk and get a piece of paper, a pencil and a calculator. Draw up a simple chart and write down every single debt you owe. List companies, amounts owed and interest rates and fees. Next write down what your net income is each month. Compare the two and look to see where your money is going.
Three – ?Now you have both your net income and balances owed written down, look over it and digest for a minute. How long will it take for you to pay it all back? 5 years? 10 years? 40 years? Bear in mind that each month balances will rise with interest rates and fees, even if you’re not spending any more money on those accounts.
Four – ?Next comes the plan. There are four options available for the debtor to use to pay off their creditors. Debt repayment, debt negotiation, credit counseling and bankruptcy. Each works differently and some may work for some consumers but not for others. Each situation is unique and often it’s prudent to talk to an expert on which method will work best for your situation. Although your credit rating will take a hit, know that it can be repaired over time.
Five – ?Keep your eyes on the prize. Although any form of help is going to look appealing, don’t just cut to the chase. Take the time to sit and evaluate each company’s policies, procedures and plan for your debt. Ask for references and to see all paperwork in black and white before you sign on the dotted line.
Debt relief doesn’t have to be complicated, you just need to be educated and focused. In no time you could be debt free and enjoying life as it’s meant to be! Take all these tips in hand and run with them. Being educated about debt and spending habits is only half the battle. Remember to remain positive and focused throughout the process and you’ll be debt free a whole lot faster.
