Entries from September 2010 ↓

9 Steps To Help You Get Some Debt Relief


The 9 steps to help you get some debt relief can be a true life line. When you are in debt it can feel a lot like drowning with no real way out and no options for recovery. It would be easy to resign yourself to a lifetime of making payments on credit cards and other bills only to find that there is no real movement on the balances of your accounts. Living in the cycle of debt is stressful and difficult. Instead of doing that you must grab on to the life line of debt relief and financially free yourself forever.

These 9 steps to help you get some debt relief are not always going to be easy to follow, but that is not a reason to give up. Remember that your debt didn’t eventuate overnight. Therefore getting out of it will take some time. But, once you get the ball rolling it will become easier and more satisfying to pay off your debts until finally you are debt free.

9 Steps To Help You Get Some Debt Relief

Assess – Assess how much debt you have and which of those debts are considered bad debts. Only debts that have a tax advantage like student loans or mortgages are OK debts, all others are bad debt and need to be paid off as quick as possible.

Reduce – Contact your lenders and ask for a lower interest rate on each of your debts. Do not take the first no response that you get, ask for managers and really try to get those rates reduced. In most cases you can make it happen.

Rank – List your bad debt in order of interest rate with those that have the highest interest rate listed first.

Attack – Devise a plan of attack to pay the minimum balance on all of your cards except the one with the highest interest rate each month. The one with the highest rate should get the minimum payment as well as any other money you can put toward it each month to pay it back if quickly.

Minimize – Cut down the number of credit cards you own to only the one or two that offer the lowest interest rate and best benefits. Cut up all the rest so that you are not tempted to use them.

Budget – Consider your monthly income the holy grail of spending. You simply cannot spend more then you make each month. It would be advisable to set up a budget that allows you to do this. Remember that overspending is what got you into debt in the first place.

Sacrifice – You will probably have to cut back on a lot of extras during your debt pay off time, but in the end it will be well worth it. Before you go out to dinner or on a trip consider how much of a dent that money would make in your debt and decide to spend it on paying off your bills instead of creating new ones.

Earn – One of the ways to speed up the debt relief process is to earn more money. If you need to have a yard sale or sell some things at an on line auction site, do it. If you need to get a second job then get one. Do whatever it takes to pay that debt off fast.

Celebrate – Once you are debt free take a moment to celebrate what you have accomplished. It is not a small thing and you deserve to be rewarded for it, just make sure you do not have to go into debt to do it.

These 9 steps to help you get some debt relief can be the answer to your financial problems. All you have to do is be absolutely determined to follow them and you can be free of financial worries for the rest of your life.

Timothy Ng is an experienced personal finance writer, specializing in credit card comparison. Check out his guide to no annual fee credit cards where he will step you through the process of finding the best no annual fee credit card.