subject: Debt Relief Advice – How To Get Rid Of Bad Debt And Repair Your Credit [print this page] The credit crunch has been tightening the belt of your budget and you need debt relief fast - but do you know what debt relief is all about? You have bad credit, a mountain of credit card bills, increasing mortgage payments, and other debts that have you in need of relief. Without debt relief, it seems almost impossible to dig yourself out of this financial hole. However, there are steps that you can take to tackle your troublesome debts head on.
Many people have old-school images of endless bankruptcy paperwork and weeks of credit counseling classes in their heads when they think about what debt relief is. Actually the term is quite simple. It just means taking some kind of action in order to get your personal finances under control. Whether you take the action yourself or hire someone to do it for you is up to you, but either way when you procrastinate it just makes things worse.
Many people who need debt relief simply need to make a few adjustments to their lifestyle in order to stretch their income further. For example - one of the first steps towards achieving freedom from your debts is to come up with a workable budget. You may be aware of how much of your income goes towards the mortgage payment, utility bills and other debts - but do you know how much you are spending each month on little luxuries that add up? That $2 coffee you grab every morning before work adds up to $40 a month. Eating out can also remove a sizable chunk from your income. If you track all of your expenses for just one month, and then take a look at where your money went, you may be very surprised. Creating an effective budget means tracking every penny that leaves your pocket, and then trimming the fat.
Debt relief is also the process of negotiating reduced payments with your lenders. This is also called settlement. If you have bad credit and your accounts are now with collections agencies, you may want to consider negotiating a settlement. There are debt negotiators you can hire and downloadable kits that can help you do it yourself.
In order to repair your credit, you must first address your debt. After a few letters or a few phone calls, you could feel the relief of getting your finances under control. You may even say to yourself "why didn't I do this before?" Debt relief is as much about your attitude, willingness, and self-motivation to tackle it as much as it is a financial problem. Procrastinating is the worse thing you can do. The sooner you talk to someone and get help, the better you will feel.
Debt Relief Advice How To Get Rid Of Bad Debt And Repair Your Credit
