Choosing Self-Help vs. Professional Debt Reduction Assistance
Debt reduction assistance can mean the difference between drowning in debt or being thrown a lifeline. Here are some tips from the experts to help you find your way back to financial freedom. Read the advice listed below and then decide whether you need Debt Consolidation help.
Debt reduction assistance can come in many forms - for example a debt settlement firm or consolidation loans. It may also take the form of self-help. Some experts believe in paying off your debts 'one paycheck at a time'. This requires you to mail a payment to your lender on a weekly or twice weekly schedule.
Where you can only pay the minimum repayment on your credit cards pay a weekly installment rather than a monthly one. You could save as much as $10 to $100 per month! If you are considering you will most likely have to pay a fee so weigh up these potential savings against what you may have to cough up.
Even if your creditors only provide one payment coupon at a time, you can make as many payments as you can afford. Once you have determined which creditors need multiple payments (e.g. loans and credit cards that incur interest on outstanding balances) you can pay them as many times during the month to try to reduce your interest. Other debts like telephone, electric, and cable are due on a monthly basis and don't add interest - these can be paid monthly. Consider asking for debt reduction assistance when dealing with home mortgage loans as these require special consideration.
You can now divide the minimum monthly payment by the number of weeks in the month. So if you owe $200 you actually pay $50 per week. Choosing a single creditor to repay in this way is a good way top get rid of your most pressing debts. You may find that once major debts have been paid in full you don't need professional debt reduction assistance. Send the minimum payment to all your other creditors until then.
Now you are ready to start with the next most urgent creditor. Take all the money you were paying to the paid-up creditor and plug it into the next debt. Are you getting the idea? That's it - simple! Get started today - you can do it! If you are in heavy debt and think this strategy will never work for you, please find formal debt reduction assistance and take charge of your debts.
