If you feel like you’re swimming in a sea of credit card debt, you’re not alone.
This fact is unlikely to make you feel better.
Still, the fact that you have many companies means that there are a variety of debt reduction strategies and debt consolidation services that you can use to get back on solid financial ground.
There is a thriving sector, full of companies that do nothing but help consumers deal with their debt problems.
These credit counseling companies range from community non-profit organizations to national networks and large mega-companies with branches in all major cities.
Finding the right company to trust your debt reduction can be difficult and challenging.
Before turning to an outside company for help, however, there are measures that consumers can take on their own to reduce their debt burden.
Obviously, the most direct strategy is to devote extra money to withdraw your debt. Every extra dollar you put on your credit card balance is another dollar for which you owe no interest or penalties.
Obviously, finding that extra money can be challenging. Most people are lucky to have a few dollars left between paydays, and many consumers run out of money before a month is over.
This is where a good budget program can come in handy. Budgeting is not a skill taught at school, and it is often not taught at home either.
Learning how to budget and stick to it can be an essential aspect of your financial life. Try this little exercise and see if you can’t lose any extra money each month.
Write down all expenses incurred for at least a week. It’s all expenses, all cups of coffee, all meals, all trips to the supermarket, all trips to the mall, all tanks of gas.
Be scrupulous when recording every penny spent and what you spend. At the end of the week, add it all up and examine it. Ask yourself if each item was a necessity.
Are there any places where you can reduce your daily expenses? Even a dollar or two a day can increase quickly, try to reduce it for a few months and put that extra money into your debt.
Obviously, this strategy may be only part of the solution for serious debts. If you owe more than you can afford, try to negotiate directly with your creditors.
Consumers are generally pleasantly surprised by the flexibility of their credit card companies, banks and other creditors when renegotiating their debt terms.
For example, your credit card company may be willing to offer a lower interest rate, waive specific fees, or even accept a lower amount than you owe.
Obviously, the bank is not doing this just to help you. It is in the interest of your creditors that you are in a position to pay what you owe.
After all, if you are forced into bankruptcy, the bank is unlikely to be able to recover what is owed. And as you know, bankruptcy is also not a panacea for the consumer.
This black mark will follow you for at least seven years, and it is no longer so easy to use bankruptcy to protect yourself from debt.
It can be difficult to reduce debt, but by carefully following a budget and negotiating with your creditors, you can control your mortgage and your spending.
You will need to learn how to deal with debt on your own. There is no course on your essential skills, but the skills you teach yourself can help ensure your financial future and keep you debt-free.
If you find it difficult to manage yourself, you can always look for a debt consolidation company.
Debt management can help you pay off that debt.
When using credit counseling, you will make A LOW monthly payment to the debt consolidation company and, in turn, they will disburse the money to your creditors.