Posts Tagged ‘Reducing Your Debt’
It is possible to control your debt, rather than have your debt control you. Take those reins. Be the one in charge. The first step is debt negotiation. You don’t know what it is, much less how to do it? Let’s talk about it.
Credit cards are great – at least for the first couple of swipes. Then you get the bill. Like most of us, you’re probably struggling with: How am I going to pay that bill? And so, you don’t. And the bill gets higher and higher. Until it’s so high that it’s overwhelmingly astronomical. The minute the bill becomes too much to handle, it is time to call on the expertise of a debt negotiator or consider any of the offers for debt consolidation loans. If you had never thought about calling in a debt negotiator, don’t feel alone. Most people don’t even know such a profession exists.
If you know about the profession and if you are ready to make the phone call, I’ve listed a few handy pieces of information that you should know:
1. When you call, you should have a list of the current amount you owe each creditor, as well as the interest rate that each creditor demands. Be honest. Unless you give the negotiator the correct information, he or she will be hindered during the negotiation process.
2. Keep your financial records. The money you spend with your credit card and the money you send to your creditors. These expense records will help you understand how you spend money. After all, it isn’t the creditor who got you into debt, but your spending habits. The creditor, merely, gave you a tool with which to bury yourself in your own debt.
3. Know that most creditors, including credit card companies, want you to be in debt. It is not in their financial interest to negotiate a settlement with you. However, most lenders understand that if they don’t negotiate, there’s a chance that they might not see any return on their money. After several phone calls, they usually give in to the notion of negotiation.
4. Don’t beat around the bush. If you want something from your debt settlement company, ask for it. The company will either be able to give you what you want or point you toward a company that can.
5. Follow your vision. It’s more than important stick to the agreement (between yourself and the debt negotiator). If you set up a payment plan with a creditor, don’t default or make a late payment. It doesn‘t look good for either the debt negotiator or you.
With all this good advice, you must remember that debt negotiation won’t keep you out of trouble forever. You MUST change your spending habits – no if, and or buts about it – spending got you into this mess; it’s time to redefine what spending means in your life. Hopefully, you can stay out of this mess.
In the world we live in today, debt is one of the biggest causes of stress in families. Many jump into loans for people with bad credit, but is this the only way to deal with debt? Wanting and needing things have come to the same level. People will go to just about any lengths to get want they want and then justify in their minds and the minds of other that they need it. The hard truth is, nine times out of ten we don’t need it and it is simply something that will make our lives easier or maybe give us a higher status with the people around us. Impressive…maybe. Smart…no. But we are all guilty of it at some point.
Once you have buried yourself in debt, you begin to have sleepless nights. You begin to focus on never having enough money, thus come the expression, living paycheck to paycheck. For a lot of people this is a way of life. It doesn’t have to be, you have the ability to turn things around. But you have to make that decision and stick to a plan.
The easiest way to attack your debt is to first figure out how much you owe to each of your creditors. The hardest thing you will have to do in this process is to contact each creditor, but this is the best step you can take.
Start with the smallest amount. If you can make your minimum payment to each creditor, you’re doing well. If not, focus on one at a time. Figure out how much you can pay to your smallest amount over and above your minimum payment. Let the creditor know that you are going to pay “x” amount each month. When your smallest t one is paid off, move onto the next one. Continue making your minimum payment, but add the amount you were paying to the one you just paid off on top of it.
By taking your debt one step at a time, paying off your debt does not seem so overwhelming. As you pay each creditor off, you will accomplish a couple of thing. One, it is one less phone call you will receive every month, but most f all, you will feel great about what you are accomplishing.
Something to keep in mind: In society today, you are not alone. Many people today are struggling with debt. How each person handles it varies from person to person. Creditors are aware of the financial situations we all find ourselves in and by contacting them; they are willing to work with you. Anything in life that is worth something is worth working for.