Proven Debt Relief to Regain Financial Control
If you’re struggling with debt, you’re not alone. There are thousands of Americans just like you who are currently dealing with various forms of debt.
Getting out of debt does not have to be a difficult task, but it does take time and dedication to a plan. Depending on the seriousness of your debt there are essentially two ways of attacking it. You can try to tackle it on your own with a bit of guidance or engage a free/paid professional.
Below are proven techniques and tips on how to get out of debt on your own along with a list of free non-profit assistance programs that specialize in personal finance.
If you are in need of immediate financial assistance, please reach out to your nearest Credit Counseling agency.
Do it yourself (DIY) Debt Solutions
Create or Review Your Budget – A budget is the foundation of any serious financial plan whether it’s handling debt or growing wealth. There are many components to a budget beyond looking at what cash comes in and what goes out. Read more on how to utilize a budget to get out of debt and manage your money. All the below tactics should be used in unison with a budget.
Debt Consolidation – Often times it is thought that this is the best way to tackle debt and get back in financial control. Whilst there are some advantages to consolidating debt, there are also some potential issues. Gain a strong understanding on when it is and isn’t appropriate to utilize debt consolidation versus other techniques.
Debt Snowballing – This is a straight forward way of organizing your debts and paying off the debt with the lowest balance first and then applying that payment towards the next lowest balance and so on. Visit this section to get more detail and examples on how it works
Debt Avalanche – This is similar to snowballing but instead you address the debt with the highest interest rate first. Visit this section to get more detail and examples on how it works.
Other possible do it yourself solutions can include a Debt Management Plan (DMP), Debt Settlement or Bankruptcy. These are options that you can do on your own but most people engage professional help for these, see below.
Professional Help Options
Credit Counseling – There are numerous credit counseling agencies though out the country, many of which are non-profit or funded by the government and are free. They can review your specific situation and provide guidance on every debt reduction option available and which may work best for you. Learn more about credit counseling and national programs here.
Debt Management Plan (DMP) – This is a program in which a new payment plan is negotiated with your creditors. This can be done by you in some cases as some businesses offer this directly to their customers. In other cases a credit counselours or similar services may do this on your behave. Learn more about DMP’s and when they are appropriate here.
Debt Settlement – This is a process in which you tell your creditors that you cannot afford to pay back the whole amount owed but can pay back a portion of it if they cancel the total debt now. There are significant pros and cons about this tactic, learn more here.
Bankruptcy – This option often has a negative stigma attached to it but it does serve a purpose and is there to help those who are going through serious financial issues. Bankruptcy is nothing to be embarrassed about as it’s a great option for some people as it allows them to regain control of their lives and start fresh. Learn more about bankruptcy and when it should be considered here.