Are you trapped under a pile of bills and past due notices that are causing you stress? Do you struggle to sleep at night because all you can think about is your debts and how you are going to pay them? There are ways that you can get out of debt. Here are 3 tips on how to get out of debt.
Doing it yourself
If you are going to get out of debt without getting any help, then you need to know what you are doing. There is help available, but not everybody needs it or will use it. You must make sure you have the discipline to put together a plan and stick to it because getting out of debt is not a quick process and will require some sacrifice.
Setting up your budget
Here is your first debt tip. You need to set up a budget. This needs to include all of your expenses and what you bring home each month. Balance it out and add in money for entertainment, expenses that are not monthly, savings, and an emergency fund. This will start you on the right track and give you an idea of what is left to pay on your debts each month.
Getting your credit report
Your second debt tip is to get a copy of all three of your credit reports. You can do this for free or very cheap right online. Just go to one of the many sites that will give you a free credit report and get it. This will give you all of your debts in one handy report. This will be like your bible for the next few years.
Organizing your debts to be paid
Your last debt tip is to get organized. Start by listing out all the debts that are on your credit report that you are not currently behind on. You need to continue to make the minimum payments on these so that you keep them current. Then, list the debts that you are not current on from the smallest one to the largest one.
You will be starting with the smallest one and paying all the money you have left in your budget for your debts to it until it is paid off. You should contact the company that holds your smallest debt and find out if they will accept a settlement offer. Most of the time they will. Ask for it to be sent to you in writing, then pay the debt off. This will save you some money.
After you pay the smallest debt you will move onto the next one and do the same thing. Continue this until you are through the list. Make sure you get a new copy of your credit reports each year so that you can see your debts being paid off. Also, if one of your creditors does not report the debt paid you can write to the credit bureaus to challenge the debt and this will force them to report it correctly.
Now you have 3 tips on how to get out of debt that you can use to help you out from under that mountain of past due notices. Set up a budget, get your credit report, and get organized so that you can live the financially free life you deserve.