If you currently owe money on credit cards and loans, you will probably have noticed quite a few companies advertising their ability to write off your debts. They make it seem so easy but in fact the majority of these schemes are a hoax. These companies simply want to remove cash from your pocket, cash that would be better redirected towards reducing your bills.
Try these self help debt reduction tips today and see what progress you can make. Unfortunately it is a lot easier to get run up debts than it is to pay them off. But there comes a point where we either see that we need to take control of our finances or an event like redundancy or death makes us wake up and smell the coffee.
So what can you do apart from the obvious drawing up a budget and listing out all of your creditors. These are important steps in the process but they are only part of the picture. YOu cannot fix a problem until you are aware of the full extent of the situation.
The first thing you should do is make a pact with yourself now to operate only on cash. There is nothing like getting rid of the flexible friends to make you take account of what you are spending. When you get paid, pay all of your priority bills such as your mortgage and taxes and then see what you have left over. You need to give yourself an allowance to live on. This is the amount you can spend every week or month and if you spend it all, there is no resorting to the credit cards.
Not running up any more debt is the first self help tip I can give you. The second is to obtain a copy of your credit report from each of the three credit agencies, Equifax, Experian and Transunion. You are legally entitled to one free copy each year. You need to examine the contents of each report and look at your list of debts and make sure that both records are similar. Be careful to check things like the balance outstanding and payment history as quite often the financial institutions can make mistakes reporting these issues. These errors can damage your credit rating and need to be addressed immediately.
The next step in your get out of debt journey is to see if you can move any of your debts to lower interest rates. I don’t mean that you should take out a debt consolidation loan. In the majority of cases, this is not a good idea. Most of these types of loans will be secured on your property and if you fall behind in payments you risk losing your home. Your home is not at the same level of risk when you owe the money on credit cards or unsecured personal loans. So avoid this option unless it really is the only one you have.
Try these self help reduction tips today to see how you can find your path to financial freedom.