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Do
It Yourself Debt Relief
With mounting bills
and unforeseen hardships, you may be considering
some form of debt relief. There are many options
to help you, but the best may actually be you
helping yourself. Here are some suggestions for
starting debt relief and becoming more solvent.
First, don’t stop communication. While it is a
natural response to stop answering the phone and let
the mail stack up unopened, this doesn’t solve
anything. Contact your creditors. Explain the
situation to them. In many cases, they will work
with you to reduce your debt by lowering the
interest rate and waiving over-the-limit and late
fees.
Second, stop using all your credit cards. Whether
you file for bankruptcy or sign on with a credit
counseling service or debt settlement, all of them
will demand that you give up your credit cards. Do
it yourself now.
Third, make getting out of debt a priority, and work
toward debt relief as though you were with a credit
counseling service. This is how credit counseling
services work. You make one regular payment to them
each month, and they disburse your money to the
creditors. When one is paid off, the extra money is
applied to the other creditors. If you have extra
money one month, put it toward one of your bills. As
soon as you have paid off that bill, take the money
you would have spent on that one bill and apply that
every month to another bill. By continually making
larger payments than what is owed, the credit cards
will be paid off faster.
Some companies will tell you that because you are
not a professional negotiator, credit card companies
will still take you for as much as they can. That is
a possibility. If you are unsure about taking the
above steps yourself, you can check into debt
settlement, debt consolidation, or consumer credit
counseling services. All of these options promise to
reduce your debt by anywhere from 40-60% and to be
debt free within 1-5 years. Be careful, though. Some
will take an upfront fee of up to thousands of
dollars, which doesn’t get applied to your
creditors. Others claim to be non-profit and will
take a donation, but the donation may seem like just
another bill to pay. Further, they may guarantee to
protect your credit rating from bankruptcy, but that
doesn’t mean that your credit rating will come
through cleanly because you are dealing with a debt
relief service.
Do plenty of research before signing on with any of
them for debt relief.
About the Author
Timothy Gorman is a
successful webmaster and publisher of Debt-Relief-Solutions.com.
He provides more debt relief, consolidation and
free debt consolidation information that you can
research in your pajamas on his website.
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