10 Steps to Conquer Debt

TEN SIMPLE STEPS TO CONQUER PROBLEM DEBT If you've identified a problem in the area of personal debt, you'll need to set about remedying the situation. Here are easy steps to regaining financial control: 1) Seek help. If you're not sure how to proceed, or you're feeling too

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  1. #1
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    Default 10 Steps to Conquer Debt

    TEN SIMPLE STEPS TO CONQUER PROBLEM DEBT

    If you've identified a problem in the area of personal
    debt, you'll need to
    set about remedying the situation. Here are easy steps
    to regaining
    financial control:

    1) Seek help. If you're not sure how to proceed, or
    you're feeling too
    overwhelmed to act for yourself, call a non-profit
    credit counseling program
    for advice and assistance in working with your
    creditors to set up a
    repayment plan. Consumer Credit Counseling Service has
    offices throughout
    the US. Call 1-800-388-CCCS, 24 hours a day, for an
    office near you. You can
    also find information about debt problems from your
    local church, library or
    bank. Look for information on-line as well.

    2) Contact your creditors. As soon as you're aware you
    won't be able to make
    a payment, contact your creditors. Creditors are more
    likely to work with
    you if they're contacted before the payment is
    actually overdue. Debt
    collectors are trained to solve payment problems, so
    don't be afraid to be
    honest with them about your financial situation. Stay
    calm. If you commit to
    paying the bill by a certain date, be sure you follow
    through on that
    commitment. The creditor won't be likely to work with
    you again if you don't
    keep your payment promises. If you can't make your
    minimum monthly payments,
    write to each creditor individually and see if you can
    work out smaller
    regular monthly bills. Be sure to explain to them why
    you fell behind in
    your bills, your current income, your other financial
    obligations and the
    exact amount you can pay them each month.

    3) Cut up all credit cards and send them back to the
    issuing companies
    immediately. Officially close all credit accounts. The
    temptation when you
    start seeing lower balances on your accounts could
    lead you to charge the
    credit limits right back up again if the accounts
    remain open. Don't take
    out anymore loans or open any new credit accounts
    until back bills are paid
    in full.

    4) Set a frugal budget and live within it. It's
    usually easier to decrease
    spending than increase income. Don't make any
    purchases above and beyond the
    absolute basics until you've made some headway in
    catching up on your back
    bills. Consider selling assets to find more money for
    your debt repayment.
    Even just holding a large garage sale can sometimes
    generate enough money to
    help pay an immediate bill or two.

    5) Prioritize debts. Mortgages, child support and any
    debt that has gone to
    a collection agency is a priority. After you've
    identified the first
    priority debts, look for the credit companies that are
    charging you the most
    interest.

    6) Pay each creditor something. No matter how small

    the amount you're able
    to pay, it will show good faith on your part as you
    try to negotiate payment
    arrangements.

    7) Track personal spending. It's important to identify
    any holes where your
    money is draining out. Keep a detailed record for one
    month of every
    expenditure, no matter how insignificant. Little
    expenses on a regular basis
    add up quickly. Carry a small notebook with you and
    write down every single
    purchase. Now you'll know where your money's going.

    8) Plug up any holes discovered from the spending
    record.

    9) Plan ahead for annual expenses (i.e.: insurance,
    car licenses, medical
    deductibles, etc.).

    10) Set long term financial goals. After setting
    concrete, definite goals
    for future financial health, make all current
    financial decisions with your
    future well-being in mind. Keep the end result in mind
    -- debt-free living!



    Cindy Sue

  2. #2
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    Default Re: 10 Steps to Conquer Debt

    You can also follow Liss' ebook & use the money you save on your grocery bill to pay your old debts down. It's on the article page.
    ~Shirl

    Give a gift of joy...
    Give a Gift in a Jar!

 

 

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