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Top 5 Tips For Helping With Debt

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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

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Steps You Can Take With Credit Card Help

Want to fix it yourself? There’s a tool for that. Change your oil? There’s a store for that. How about repairing your credit card debt? Yep, you guessed it, there’s a tool for that. Several in fact. Debtors can feel good and empowered about getting the information they need without having to call in the big guns. But, if you want to call in the big guns you can do that too. Here are 5 steps you can take to put yourself ahead of the game when it comes to your credit card debt.

Some of these steps seem simple, but are often overlooked. Don’t skip them, you need to see the big picture to repair the little details. If you want to get ahead of the ever growing mountain of debt, then buckle down and follow each step diligently.

1. Step number one. Write down on a piece of paper or spreadsheet ALL the money you owe. This includes your monthly expenses like coffees at Starbucks or Sunday newspapers, as well as your credit card balances. Some may even find it helpful to jot down what they spend each day in a small notebook. Total everything at the end of the month. Seeing spending in black and white can be true revelation.
2. Funnel any frivolous spending towards paying down your debt instead of wasting it. Do you really need that extra, extra, extra, triple shot, vanilla chai soy latte every day? No, didn’t think so. Most experts agree that you should pay down the smallest balance first, then take that money and snowball it into your next smallest balance, and so on and so forth. Personally, I think this is the best way to pay down balances. If I see my debt paid from extra funds in a few months, do you think I’m going to be motivated? You bet.
3. Call your creditors and request a lower interest rate. Now, this sometimes does not work if you have been late on payments in the past. Most companies however want to get paid, so they will issue a temporary (sometimes permanent) lower interest rate on your account. You may also consider transferring a balance from a higher rate card to a lower rate card. Be careful though, juggling balances and interest rates can sometimes have a negative effect on your credit score overall.
4. If you find you’re still having difficulty contacting your creditors directly to negotiate, then you will want to look into a debt consolidation loan. This can work in your favor and help boost how quickly you pay down your debt. Most banks and credit unions offer a personal or credit loan that have lower interest rates than the credit card companies offer. You can pay off all your balances with one loan and avoid all the interest and fees headache you get with credit cards.
5. As a last resort, you may be able to negotiate a settlement on your account with the creditor. They will offer an amount they feel is reasonable to settle and close your account. There is no guarantee that your creditors will do this for you, but if you are lucky enough to have an understanding creditor, you can negotiate an amount that is quite a bit lower than the amount you currently owe on your account. You can also hire a debt negotiation company on your behalf to do the dirty work for you.

Repairing credit card debt by yourself is absolutely doable, just make sure you are prepared and know what the big picture before diving into a method. Follow through and you should be debt free and on the road to financial freedom in no time falt!

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