Being debt free is a dream held by thousands of people just like you. The accumulation of debt from college, vehicle, personal, home and credit card loans can take you down and hold you there if you do not do something to get out of it. There really is a solution to your problems, though some of them may not be what you would like; you can be free of debt.
If you are struggling just to meet the minimum payments on your accumulated debt, you are in a crisis. This means that you are not paying enough in principal to get your debt paid off. You may not even be able to meet the minimum requirements. This is even scarier because as the months go by, the interest accumulates. Debt goes higher at a faster rate. Soon, you are screening your phone calls because you don’t know what you can possibly do to make your creditors happy.
First of all, to be debt free, you must talk to your creditors. Get a copy of your credit report from all three credit reporting agencies and gather all of your bills together. Your first priority is to take care of the reported debt on your reports and pay off the debt that has the highest interest rates. Stop using credit cards and try to negotiate with creditors.
First, get rid of your credit cards. Then, start looking for debt consolidation services and talk to them about the services they offer. The best services can talk to your creditors and come to an agreement to lower your interest rates or even settle some of your debt for less. They will then add the rest of the debt up and pay it off for you. This makes you obligated for one loan – owed to the consolidation company. The interest rate should be lower than the high interest you have been paying. If the service offers you a lower amount of debt and you find it workable, this option would be the best one for you.
If you cannot find a debt consolidation company that is able to work with you to lower your debt, then your only other alternative may be to file for bankruptcy. Whether you have settled debt yourself, used a consolidation firm or filed for bankruptcy, you must stop accumulating more debt. Do not apply for more lines of credit until you have settled what you already owe. Do not just be debt free for a few moments. Do your best to stay debt free for life.
Author: Philip McClarenceThis author has published 3 articles so far.