If you find yourself struggling to make ends meet from month to month, you’re not alone. Many people find themselves in this situation at one time or another in their lives, but that doesn’t mean you can’t take the steps necessary to regain control of your finances. This article is going to give you a few ideas of how to do just that.
Before you can consider the best way forward, you might want to start by making a list of what you owe. Gather your invoices, write out who you owe and how much. This should help you make the best decision on how to proceed.
This is also a good way to see just where your money goes. Create a budget. Look for areas where you can make cuts, and then stick to that budget so you don’t make the problem grow any worse.
Debt Consolidation
This option consists of combing your debts so you have one lower monthly payment you can handle instead of many payments each month that are unaffordable. If you choose to go through a debt consolidation company, ask if they charge for their services and how much. You don’t want any additional unanticipated bills to add to the problem.
It is also advisable to weight the advantages and disadvantages of debt consolidation carefully before making a decision to go down this path. It could take considerably longer to pay your debt off by making this choice.
Debt Settlement
Another way to shrink your debt would be through debt settlement. By working with your creditors, you might be able to get them to agree to lower the interest rate on what you owe, diminishing the burden somewhat.
Do build a relationship with each of your creditors. Establish one person to talk to, if possible, and take notes. You will find if you can keep emotion out of it and stay professional, they are willing to work with you.
Debt Relief Programs
If you are thinking about using a debt relief program, check out each company you are considering and make sure they are reputable. Find out how long they have been in business – you don’t want to choose a brand new company with no track record. If anything they are telling you sounds too good to be true, it probably is. If you have doubts, ask for it in writing. If they aren’t willing to put it in writing, move on to a different company.
Be cautious about using a credit counseling agency. Some do charge fees. Also, if they advise you to stop paying your bills until they have negotiated on your behalf, consider your credit score may be affected by this decision. Remember, your creditors are under no obligation to agree to reduce your debts.
Only you can decide if any of these three options is the one for you. But whatever you decide, stick to the plan you make and you will get through it.
