Follow these 5 steps to Debt Relief today
You know debt, we all do. It is a facet of our daily lives and keeps many a
person up at night. You don't have to be a debt victim, learn how to keep your
head above the water and never fall into the cycle of debt for life. It's easy,
you can do it.
Step #1: Spend Less
Ok, this one should be obvious and is the last thing people like to hear, but it
is the most critical and least followed step to debt relief
. If you spend more
than you make you are in debt and sinking, even if it doesn't feel like it yet.
It's simple math, spend less and spend more carefully.
Step #2: Debt: the good, the bad, and the ridiculous
Not all debt was created equal, it's a fact. Look at your bills, credit cards
and so on and find out the interest rate you are paying
. Good debt, the
necessary type that you will have to take on at some point in your life falls
below 10% and is ok to have if you manage it. Mark all those debts you have
below 10% with a check mark and keep them for now. Bad debt is anything over
that 10% on any type of credit line you are carrying. Underline those ones in
red and start looking at loan consolidation options or paying them off
completely if you can. Get rid of them, they will come back to haunt you.
Finally anything in the 30% and up range- yes they exist especially if you have
poor credit- is ridiculous. Rip up that department store card and send a check
to pay it off today. Sell off something of value if you have to, just get rid
of that ridiculous interest payment. Now.
Step #3: Lighten your card load
Pick a credit card, not based on the picture or the cute kittens on it, but
solely on interest rate, the lower the better and keep it. Maybe one more just
to be safe. The rest cut up and trash them.
Step #4: Never hurts to ask
Remember just because the credit companies are loaning you money, they are
making it too, you are still the customer in this relationship. Call up your
and demand a lower interest rate
or tell them you are walking away.
Be nice about but be firm. Tell them you are getting offers that beat their
interest rates and would like them to match or beat those offers. Customer
loyalty is a good angle to work and put on your best bargaining shoes and start
talking. You will be surprised to find out your credit card lender would rather
lower an interest rate than lose you all together.
Step #5: Make some friends
The internet is loaded these days with message boards
full of people just like
you with the same problems. Get on a board and talk to these people, exchange
ideas, tricks and information to live debt free now.