If you know that you need help with your debt, but are afraid to ask anyone about it, you are not alone. When people begin to run into bad debt, they rarely seek help as they feel embarresed or afraid of telling anyone about their debt load. However, getting help with your debt is critical – especially if you know you are in, or beginning to run into trouble. In fact, most people just watch their debt accumulate, they just wish it would go away. However, getting help with debt is not hard, and all you need to do is ask.
As you are reading this, you are already much better off in dealing with debt than 90% of the population. You have just taken the beginning steps to educate yourself about debt. The first thing to be aware of is that your debt may be causing problems with your credit report . If this is the case, you may be tempted to consult a company that specializes in “credit repair”. Do not invest a cent in this, “credit repair” does not really exist – it is a scam. You cannot “repair” your credit, and after paying one of these companies your hard earned money, you will still have a bad credit score, and debt.
Now, getting help with your debt is a different story. There are two paths you can follow. You can learn more about debt, and help yourself, or, you can consult a debt consultant who will help you to deal with your debt.
Debt Help by yourself:
Some people choose to help themselves when it comes to debt. The first step to debt help on your own is to know your credit rating. This is crucial, you need to understant what your rating is, and how to read it. Then, you need to take a good hard look at your debt load – all your bills, credit cards, loans, and anything else that is consuming your money. You need to write each of these things down, how much you are paying, and how much interest you are paying on each. Your next step in the war on debt is to write down each purchase you make over the course of the month, each and every little one. Anything from coffee in the mornings with spare change to groceries. To manage your debt, you need to know exactly where your money is going.
As you are doing this, look at your list of bills and credit debts – and list them in order by interest rate. Put your highest interest debts at the top – and your lowest interest rate debts at the bottom. Remember to add extra weight to important bills however, as this will help to keep your credit rating in good order. Decide how much extra money you can put into your debts every month (this is why you track your purchases for a month) and pay down your highest interest rated debt first. On the rest of your debts, make the minimum payments required.
While you are doing this, you must resist the temptation to aquire any new debt. The act of tracking your purchases for a month helps immensely – although it is both frighting and annoying at first. You will find in the act of tracking your purchases for a month that you likely have more money to attack your debt with than you thought.
You may also consider a debt consolidation loan, which allows you to bring all your debts together in a single payment – this payment often has a lower interest rate than the rest of the debts that you have. However, if you take this route to debt be careful not to get any new debts, consolidation will not help you if you end up creating more debt for yourself overall. If however, the self help approach to debt seems frightening or difficult, it is time to seek professional help.
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Debt Help from Professionals:
The advantage of debt help from a professional is that they do most of the work for you. They are versed in all the aspects of debt reduction and consolidation, as well as the proper path to help maintain your credit rating. With a debt consultant on your side, you have expert advice every step of the way. Your first few appointments with a debt help consultant should involve you talking quite a bit. Your debt consultant will need to know a good deal of facts about your credit and debt load to be able to help you.