Get Debt Settlement Help
There is nothing to be ashamed of when running a debt. It’s never too late to own up and consult a professional financial advisor about it. You can either go in for a debt management program or a debt consolidation loan or just settle your debts through a professional debt settlement company. While your debts are being taken care of, you should tighten your belt and see how you can cut your spending efforts every month. Debt settlement and debt reduction have to go hand in hand for a debt-free life in the future.
Reduce your monthly spending
Start by budgeting yourself. Make a list and purchase according to the plan. Do not lend or borrow any cash simply to tide you over. Always keep a check on your monthly spending by cutting down on comforts and luxuries.
Get rid of your credit card
Always pay in cash and limit your spending spree. Cut up your credit card and make sure that you do not charge anything on the card. Also keep a check on your credit score and try to maintain a good credit score report card. And finally, don’t roll balances from card to card. This is a sure tempting way to make yourself believe that you’re doing something about your debt problem. But in reality, you are only lowering your interest rate and not the debt amount. Every time you get a new card, you’re generating an outstanding open credit line that will appear on your credit report.
Make a list – prioritize
Before consulting a financial advisor, make a proper list of all your debts. This should include the debt amount, rate of interest, payment term, monthly payment and the date on which the debt was incurred. Also, write down the debt type and name of lender. Once the initial list is complete, start sifting through your debts to come up with a total debt amount. Prioritize your debts into priority and non-priority ones. The former include those which have to be paid promptly lest some part of your property or business is taken away by the lender. This includes debts for phone, electricity bills, and school fees.
Consult a financial counselor
Seek professional advice about a suitable debt repayment scheme. Always ensure that the counselor listens to your needs and prioritizes the payment of your debt. The counselor should put you in touch with professional credit card counseling services and, offer you financial resources to manage your debt.
Being debt free is a twin pronged process. You have to settle past debts and at the same time make sure you don’t run new ones by managing your money wisely