If you are struggling with debt you are certainly not alone. While the government caters to businesses by relieving them of debt, the consumer feels the crunch in lower wages, higher costs of goods and services and interest rates that are obscene. This article will inform you of ways that you can reduce your debt and eventually reach a point where you are accruing savings and generating a better quality of life in the future. You do not need to go to a debt consolidation service to do this so please continue reading to relieve yourself of debt and begin to look forward to a better tomorrow.
Right off the bat you need to know exactly how much money you owe and to whom. This is always an issue as people rarely look past their monthly payment. Let’s say you bought an appliance and opened up a store credit for the purchase. You may find out that by making just the minimum payment, you are actually paying two to three times the cost of the item over the next several years. If this is the case, you need to make sure this is a debt that gets paid off as quickly as possible.
You need to figure out how much money you can afford to pay out each month and still be able to survive. When you are in deep debt, this does not mean living comfortably as you will need to sacrifice some of the non essential expenses in order to pay down the debt. In some cases, you may find out you owe more than you bring in and a part time job is your only recourse to solve the issue. It will not be a permanent situation but if a year of working two jobs eliminates half of your debt and places money in your pocket, then it is a solution that is wise to make.
One aspect that benefits the consumer today is that most companies are willing to work out lower payment plans. The reason for this is that due to mistakes they have made in the past, they also have debt and reducing it by ensuring you can make payments only benefits them and their stockholders. Tell them a low figure to start with that you can afford to pay or an interest rate that is low. They will negotiate with the offer of a slightly higher figure than you proposed but is more likely what you expected to begin with. As long as your payment is lower than it is a good deal to make. If you are negotiating paying off the debt at a lower rate, tell them you will do so for a positive mark on your credit report and get it in writing. This will improve your credit score and eliminate a payment every month. The key is to ensure you get a good remark on your credit report.
Finally, make sure to sign up for online payments as long as they do not charge a service fee for the payment. This is an easy way to ensure the bills are paid and you can simply track them in a spreadsheet or financing software.
By focusing on reducing your debt via way of negotiation, paying down larger debts or through automatic online payments, you are stabilizing your financial future. The choice is yours to make but let it be known that with a little sacrifice and effort, you can relieve yourself from the debt burdens that affect the lives of millions.
By Tony Frost