If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all of them disappear. You would probably wish even harder for that magic wand if you were falling behind behind, or at least struggling to keep up with, the monthly payments on your borrowings.
The notion of debt elimination, though, is in most cases a fanciful one, at least in the short term. If you have debts of $ 15,000, where will you suddenly find $ 15,000 for the elimination of those debts? If you have debts of $ 30,000, how can you suddenly just wipe out that amount? Realistically, you have little hope of reducing your debt balance to zero in the short term, if your debts are anything like that sort of level. Without they win the lottery, or come into some inheritance money, the average person can not suddenly find such sums.
If your debt situation is really bad and out of control, then you may be considering bankruptcy. That may wipe out your debt, but it can be a very unpleasant process to go through. The laws vary very well between countries, but can sometimes be quite draconian, and very inhibitive for your future actions relating to money. Debt elimination by bankruptcy is an extreme which, if at all possible, is to be avoided by those who have pride and wish to make a genuine attempt to resolve their debt problems and plan a better financial future.
Also, if you have debts out of control, you may be considering debt negotiation. While this will not lead to debt elimination, it may help reduce the immediate pressures and make it easier to eliminate those debts some time in the future.
Of course, with less owed, you have more of a chance, so it really does depend on both the debt level and your personal situation as to whether it is feasible to reduce your debts to zero in the foreseeable future. In the longer term, it is certainly possible, but there again the difficulty level will depend on the amount of debt and other personal circumstances.
What Are The Steps To Eliminate Debt?
Your precipice steps to debts elimination will depend on your current financial situation and other personal circumstances. However, there are some broad steps that you can follow which can help you achieve elimination with patience and determination.
The follow up article will discuss the steps you can take.