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The Step-by-Step Process for Eliminating Debt
by Petra Shulde
http://www.fixndebt.com
Americans from every walk of life are falling into a deep
hole as far as debt is concerned. Many of us have home
mortgages, car loans, credit card debt, and even debt on
our store cards. Each and every month, people are
struggling just to make the minimum payments on their
credit cards, getting further and further into debt and not
saving anything for their retirements. And even though a
home loan will help you build equity in a very positive
asset, credit cards are a very tempting way to get further
and further into debt. Sound familiar?
Credit debt is a financial epidemic that affects millions of
people around the world every year. Rather than live each
day to its fullest, individuals suffering from credit card
debt are forced to pay off their expenses from the past.
Does this sound familiar? If so, then let me encourage you
to attack those credit cards and start living debt-free!
Although it might sound like a great idea, living debt-free
is much easier said than done. This is especially true for
individuals who are suffocating under thousands of dollars
of credit debt. Unfortunately, there is no "quick fix"
solution for credit card debt.
The very first thing you must do, which is by far the
hardest, is to eliminate the temptation of using your credit
cards by getting rid of them completely. If you continue
to spend on these high-interest cards, you will never get
out of debt and your life will always be a financial
struggle. So, select the lowest interest credit card and
put it aside for emergencies, and then take out your
scissors for a credit card freedom ceremony. You have made
the decision to get out of debt and take charge of your
financial destiny.
Now, if you are already in financial difficulties, you may
need to take some other steps to get on track. One of the
best ways to lower interest rates and simplify your life is
to take out a debt consolidation loan, assuming you can
qualify. A debt consolidation loan allows you to pay off
all of your outstanding credit card debt and now have only
one monthly payment to worry about. And, best of all, you
will usually get a much lower interest rate for a debt
consolidation loan than you had for your credit cards,
saving even more money.
Another option for those in financial difficulty now is a
Debt Agreement with your creditors. For those who are
having difficulty making minimum payments, you would talk
to your credit card companies and negotiate a payment
compromise that allows you to control the amount of money
that you pay every month. A Debt Agreement is a last resort
prior to filing for personal bankruptcy, and should only be
considered in the most extreme of circumstances. And, the
credit card companies may always reject your proposal.
Some examples of the kinds of arrangements that are put in
place are:
- Payment of less than the full amount of all or any of the
debtor's debts,
- A moratorium on payment of debts for a period of time to
give the debtor time to gather funds,
- A transfer of property from the debtor to the creditor as
full or part payment, and
- Periodic payments of amounts out of the debtor's income
to creditors either collectively or individually.
Hopefully, you will be able to bet back on your feet without
taking the extreme measure above. So, to avoid this type of
problem, take control of your credit card debt today!
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