The Truth about Debt Relief

truth about debt reliefWhether you ae a shopping addict or use your credit cards to pay your bills, there may come a time when you need help to help organize your bills, repay your debt, and improve your finances. For some, Debt Relief is the answer. But before you jump in head first, it's time for a course in Debt Relief 101.

When Should You Use a Debt Relief Company?

Debt Relief companies combine all of your debts into one payment, with the purpose of simplifying your repayment schedule and lowering your overall monthly payment amount. A Debt Relief company may be able to help you pay off your debt more quickly and alleviate some of the stress associated with paying bills. If you have mounting unsecured debt (e.g., credit card bills, store cards, medical bills, personal loans, collections, etc.), working with a trusted Debt Relief company is something to consider.

What Types of Debt Relief Plans are Available?

A good Debt Relief company can help you choose the best plan for your financial situation based on your income level, type of debt, and ability to make consistent payments.
  • Debt Consolidation Program - This program consolidates your unsecured debt into a single monthly payment. The debt consolidation company then distributes the designated funds to your creditors. They work directly with your creditors to reduce interest rates, eliminate late and over-the-limit fees, and reduced monthly payments.
  • Debt Settlement Program - This plan helps people who can't repay their debt in full and are facing bankruptcy. with a Debt Settlement program, your Debt Relief company will work with your creditors to settle your accounts for a portion of the amount owed.

Are all Debt Relief companies the same?

No! Just as each person's financial situation is unique, so are Debt Relief companies. You need to find a company that offers various plans and has specialists to guide you to the right program based on your needs.

Are There Bad Debt Relief Companies?

Yes! If you choose the wrong company, you could end up in a worse situation than when you started. To prevent this disaster, follow these tips:

  • Don't enroll in a program with a company that hasn't reviewed your financial situation.
  • Don't be lured by companies promising government money to erase your debt. There are no government programs that do this.
  • Check out each company's Better Business Bureau report, and only work with a company that has an A or A+ rating.
Debt Relief plans work most effectively when you choose a reputable and accredited company, stick to the plan and, ultimately, address how you got yourself into debt in the first place.
Our Solutions Specialist can help guide you through the proccess of chosing the right program for you.  If you would like more information, give us a call or request your FREE DEBT RELIEF SUMMARY below!

1-877-492-4109

Tags: debt settlement, debt consolidation, BBB, the truth about debt relief

5 Common Mistakes People Make When TRYING TO GET OUT OF DEBT

trying to get out of debtAre you trying to get out of debt but having trouble paying down your credit card bills?

If so, then there’s a good chance you are making some simple mistakes. If you go about it the right way, and you can avoid these common mistakes, then you have a real good chance of becoming debt free.

Mistake #1: Not writing down your goal

Big mistake! One of the most important things you can do when trying to reach a goal is to write it down on a piece of paper. So go grab a pen, or fire up your computer, and write down exactly it is what you want to achieve.  Give yourself a deadline and write down the steps it will take to get there.  Once it is written down you can put it in a place where you will see it often, and remind yourself that you are committed to reaching it. Try it. It works!

Mistake #2: Not Putting Away Your Credit Cards

There’s no way you can pay off your debt if you can still buy that nice shirt or dress that’s on sale with your Visa card. You don’t have to cut them up or destroy them – simply lock them up in a safe deposit box, or put them in a sealed envelope somewhere safe – and somewhere that you won’t see them all the time. You can keep one in your wallet or purse in case of emergency. But ONLY for emergencies!

Mistake #3: Not Changing Your Spending Habits

This mistake should be SO obvious that everyone should avoid making it. But it’s not. For some reason, there are people who just don’t realize that they can’t keep spending money AND get out of debt at the same time. And I’m not just talking about buying store brand bread and cereal. If your debt is out of control, then you need to make some serious changes in the way you spend money. It's time to make a budget and stick to it.  Try using this FREE budget spreadsheet to track where you are spending and see where you can really cut back.

Mistake #4:Not Realizing That This Will Take Time

Unless you’ve been doomed by some financial disaster, chances are it took you quite a while to get into debt. And unless you are fortunate enough to inherit a bunch of money or win the lottery, chances are it will take you quite a while to get out. I wish I could tell you there was some “secret” way to pay off your debt in just a few months. Or that there was some type of free government grant to help you get out of debt without paying it all back. But there are no secrets. And no free grants. But there are good companies that can help you lower your interest rates and your monthly payments, so more money goes towards your balance. Go find a good debt relief company and follow their plan. Before long, you’ll be on the road to being free from debt.

Mistake #5:Not Realizing That The Credit Card Companies Won't Offer Much Help

In a perfect world, the credit card companies would lower our interest rates to under 10%, allow us to defer payments for as long as we want, and only allow us to charge as much as we can afford – and if you think any of this will ever happen, WAKE UP!  After all, who runs the credit cards? Banks. And why are banks in existence? To make money. So as long as people like you and I keep using credit cards, and keep making payments on large balances with high interest rates, then they’ll keep making money. Working with a good Debt Consolidation or Debt Settlement company will help you reduce your interest rate, payment and can even get you out of debt for LESS than what you owe!

If you’re making any of these 5 mistakes, chances are good you’re having trouble paying off your credit card debts. Go ahead and grab that piece of paper and pencil, write down your goals for getting out of debt, and get started on the road to life without debt!

trying to get out of debt

Tags: debt settlement, debt consolidation, create a budget, trying to get out of debt

5 Bad Habits that lead to DEBT DISASTER

debt disasterSometimes the only way to stop a snowballing problem is to go back to the top of the hill and find out what started it.

If you're up to your eyeballs in credit card debt, take a step back and recount your money missteps. Knowing your weaknesses could help prevent you from falling back into the bad-credit pit and show you a way out.

Bad Habit #1: Misusing balance transfers

Transferring balances on high-interest cards to lower-rate cards can be an effective technique, but it's easy to make it a good idea gone wrong. Transfer a balance onto a card with a low introductory rate and you can potentially save money on interest if you refrain from charging on it and focus on paying off the balance before that introductory rate expires. But most people continue to charge on the new card and wind up with more debt once the teaser rate expires. In fact, new purchases may have an altogether different interest rate. Read the fine print very carefully, and attempt the balance-transfer maneuver only if you can control your spending on the new -- and old -- card. 

Try this: If you can't refrain from charging, balance transfers won't get you out of debt. If you're really in the hole, consider getting a part-time job and dedicating your earnings to your debt load. If that's not possible, go back to your budget and cut back on unnecessary expenses such as restaurant outings and cell phone extras. Put the money you save toward paying off your balances. Pay for any new purchases with cash or a debit card.

Bad Habit #2: Not checking credit reports because you can't change them anyway.

If you have credit cards, pull your credit report at least once a year and check it for errors. Purging your record of inaccuracies can be crucial for getting better interest rates, landing the job you desire and stopping an identity thief from ruining your credit rating. The scores on your credit report also determine how high your interest rates will be on future loans. Dispute anything you think should not be there. The Fair Credit Reporting Act allows for the correction or deletion of inaccurate, outdated or unverifiable information, provided that a reinvestigation into the disputed data sides in your favor.

Try this: You can request one free copy from each of the big three credit reporting bureaus every year. If you do find a mistake, send a correction letter to each of the credit bureaus that show the error. All three allow you to dispute errors online.

Bad Habit #3: Thinking of 'budget' as a dirty word

Everyone can benefit from deciding on certain amounts for spending -- and sticking to the amount. It also makes sense to budget for known future expenses, such as quarterly insurance premiums, college textbooks and rent. Not saving up in advance means you'll have to charge expenses or cut into funds set aside for necessities. 

Try this: To find out what's draining your finances, keep track of where your money goes for a month. Use this free budget spreadsheet to categorize your expenses. This will reveal whether you're spending too much on expenses you could trim, such as restaurant outings and gas. Cut back as necessary without cutting out expenses important to you.

Plan for future costs by figuring out the total amount you'll owe and divide by the number of months you have until that day. If you have money due next month, divide by the number of weeks you have and save that amount every week. 

Bad Habit #4: Using retail store credit cards to make use of discounts

Chances are, that card carries a high interest rate you'll be forced to deal with if you don't pay off your balance each month.

Try this: If you must charge your purchase, use your general-purpose credit card. If you can't pay off the balance, at least you'll pay a lower interest rate. Limit the total number of credit cards you have to just two, if you can: one you can pay off each month and one with a low interest rate for those large purchases you'll pay back over time.

Bad Habit #5: Making the minimum payment only

Paying the minimum is better than paying nothing, but it doesn't do much to pay off most balances and forces you to keep paying interest. By paying interest on interest, you lose any savings you may have recieved from buying something on sale.

Try this: If you can afford to pay more or in full, go ahead and pay as much of the balance as you can. You never know when you're going to have a tough month. Pay in full every month and you can avoid interest charges altogether.

Or, if paying more than the minimum proves difficult, consider enrolling in a Debt Consolidation Program.  These programs can lower your minimum payments, reduce your interest and put you on a level payment plan that will have you debt free in 3-5 years or less! 

debt disaster

Tags: debt consolidation, budget, debt disaster

Paying Off Credit Card Debt - A Variety of Options for You

paying off credit card debtIn order to pay off credit card debt successfully, it is important to commit yourself to improving your financial situation for the long term. There is no such this as a quick fix. Getting out of debt takes dedication and a realistic plan. With so many options to choose from, it can be overwhelming to figure out where to begin, where to seek advice, and whether you should tackle the debt on your own or enlist the services of a debt relief provider. Let's look at your options.

Tackling Credit Card Debt on Your Own

When paying off credit card debt without the assistance of a debt relief provider or debt consolidation plan, it is imperative that you pay off your credit card with the highest interest rate first, regardless of the balance owed. The debt that you carry with the highest interest rate costs you the most money. The less time you spend carrying a balance on that high interest card, the more money you will save in the long run.

Paying the minimum balance each month does not work. In order to get a handle on your credit card debt, you must pay more than the minimum balance each month. Paying more than the minimum each month helps you pay off your debt faster, but when paying on a bi-monthly basis, you'll reduce the amount of interest paid. That means that more of your money will go towards paying the principal amount owed, thus cutting your balance dramatically. 

In addition to paying off your highest interest rate card first, you must learn to stick to a budget. This is the only way to figure out how much more you can send to your creditors each month. You'll be amazed to see how your daily $4 lattes and take-out add up. Making simple changes like brewing your own coffee at home or work and packing a daily lunch may seem like sacrifices right now, but will be well worth it once you start seeing your credit card balances start to come down. Get into the routine of asking yourself, "is this in my budget?" This will eventually become a way of life and you'll be able to break the habit that got you into debt in the first place.

paying off credit card debt

Debt Management Plan

A Debt Management Plan (DMP) can work wonders for those who wish to pay off credit card debt and other unsecured debt such as medical bills or retail debt. With a DMP, all of your unsecured debt is consolidated into one monthly payment. When you enlist the services of a debt management provider, the company will work to assist you with an affordable payment plan.

When you join a DMP to pay off credit card debt, you will find that creditors are more willing to negotiate reduced monthly payments, interest rates and late fees. Why? Because with a Debt Management Plan you will be paying off your credit cards in full. The benefits of a DMP can typically be seen after about 3 months of timely payments. With a DMP, you must be certain that you can afford to make consistent monthly payments because if you fail to make a payment or are late, it can affect your relationship with creditors.

Debt Settlement

Debt Settlement is an option for those who may not be able to afford the monthly payments of a DMP. The debt settlement provider will negotiate with your creditors to accept a portion of your unsecured debt in satisfaction of the full amount. With debt settlement, you'll make affordable monthly deposits into a trust account. This type of debt relief plan will have a negative impact on your credit, so it's important to discuss this and all options with a qualified representative.

Dealing with credit card debt can be overwhelming, and it can be especially frustrating for those who choose to pay off debt without the assistance of a reputable debt relief provider. Debt Relief NW, Inc. offers multiple options and realistic plans. We will work with you to recommend the debt relief option that best meets your needs. Paying off credit card debt requires a solid commitment on your part. As your partner, you can count on Debt Relief to help you in your pursuit of a debt-free life.

Ask one of our Solutions Specialists to get answers to any questions you have about credit card debt consolidation and our debt-relief plans. Or visit the Debt Relief FAQ page to find the answers to our most common questions. 

1-877-492-4109

payig off credit card debt

Tags: debt relief programs, debt settlement, debt consolidation, paying off credit card debt, budgeting

Your DEBT RELIEF Options

your debt relief optionsSo you’re ready to get out of debt once and for all.  The question is, how do you do it and what options do you have.  I’m going to share the options available to you as well as the pros and cons of each. 

Debt Consolidation

Whe you enroll in a Debt Consolidation Program, you are hiring someone to help you get out of debt and coach you back to financial health.  They will work with you on a one on one basis and help you establish a budget and a plan to get out of debt.

PROS:

  • Lower interest rates on your credit cards. 
  • One REDUCED monthly payment
  • Stop harrassing creditor phone calls
  • Eliminate your debt in just 3-5 years!

CONS:

  • Pay back the full amount owed
  • No room for error - If you are late or miss a payment, the creditors will remove you from the program
  • Accounts will be closed by the creditor

Debt Settlement

When you enroll in a Debt Settlement program, you are hiring a team of Debt Negotiaion Specialist to work with your creditors and settle your debt for less than what you owe.  Debt Settlement is an excellent option for someone who has fallen behind on their monthly payments an is trying to avoid bankruptcy.  You can include unsecured debt such as Credit Cards, accounts in Collections, Repos, and Medical Bills in a Debt Settlement Program.

PROS:

  • You will eliminate your debt for much less than what you owe
  • You only have to make one small monthly payment
  • It will improve your credit over time much faster than going through bankruptcy

CONS:

  • May hurt your credit score
  • Creditors may continue to call you
  • Debt Settlement cannot help with secured debt such as a home or car loan

Bankruptcy

Bankruptcy is the process of declaring yourself unable to pay off your debts.  This does not mean it will get rid of all of your debt but most of it.  The typical bankruptcy for consumers is Chapter 13.  This is where lawyers will negotiate with your creditors and collection agencies to pay back less than what are owed.

PROS:

  • You pay less than what you owe.  The typical amount you will pay back on any certain debt will be anywhere from 30 to 80 cents on the dollar.
  • They work a payment plan out for you.  This will allow you to creditors back over period of time.

CONS:

  • Hurts your credit for the next 7 years from the point of discharge.  You will not be able to get a loan of any kind.
  • Costly.  Bankruptcy can cost a lot of money.  If you’re already in a lot of debt it may be tough for you to come up with the money to even go through this process.
  • Bankruptcy is also very time consuming.  Don’t expect the process to go very fast.  In most cases it will take several years to pay back all of your debts.

Would you like to learn more about what option is right for you?  Our Solutions Specialist can work with you to determine which option best fits your financial situation. 

For a FREE no obligation consultation,

give us a call TODAY!

1-877-492-4109

your debt relief options

photo by: Helga Weber

Tags: debt settlement, Bankruptcy, debt consolidation, create a budget, your debt relief options

Debt and Marriage: 10 Debt Questions to Ask BEFORE You Get Married

debt and marriageMoney is one of the topics couples fight about most often. Debt brought into marriage is an especially troublesome part of many couples’ money problems. Research shows that debt brought into marriage is the number one problem for newlyweds. Unfortunately, debt never rests, sleeps, or goes on vacation and as long as you have debt you will be in financial bondage.

Before you say, "I do," you should get to know each other's financial health.

10 questions to ask your fiancee that can help make your future life together a successful one:

  1. How many credit cards do you have?
  2. What are your balances and interest rates on those cards?
  3. Do you pay your bills ahead of time, on the due date or late?
  4. Are there dings on your credit history that might affect our ability to reach our financial goals?
  5. What is your credit score?
  6. Can I see your credit report?
  7. What are our financial goals (salary and saving expectations, retirement plans, future education, etc.)
  8. Do you have any assets (real estate, investments, retirement funds, savings accounts)?
  9. Do you want children? If so, what are your (our) financial plans for supporting them?
  10. Do you owe any debt from a previous marriage? Are there any financial obligations that still need to be fulfilled to your ex-spouse?

There are no correct answers to any of those questions. However, if your spouse doesn't want to chat with you about finances, consider this a BIG red flag.

If you learn that there is a large amount of credit card debt, extremely high interest rates on those cards or too many credit cards, then the time to take action is BEFORE you say "I Do". you should consult with a Debt Solutions Specialist to discuss your options such as Debt Consolidation or Debt Settlement.

If you or your fiancee would like to learn more about how to get out of debt before your big day, click the linke below for your FREE DEBT ANALYSIS or simply give us a call. 

1-877-492-4109

debt and marriage

Tags: credit card debt, debt settlement, debt consolidation, debt and marriage

How to Repair Your Credit by Disputing Inaccuracies

 repair your credit

When you’ve got negative credit accounts all over your credit report, you’re going to want to do all you can to Repair Your Credit – especially if you believe the information reported is inaccurate.

Luckily, the credit bureaus understand that not all of the information they report is always correct, so they give you the option to dispute any credit account you think looks wrong via regular mail.

All 3 have since expanded their dispute departments to cover requests being made online, so you don’t even have to worry about your queries getting lost in the mail, or having to wait longer than a month for a response.  Simply sign onto the appropriate credit bureau’s website, check off which accounts you want disputed, leave an explanation for why you’re disputing the account and you’re done.

When something seems too good to be true, it usually is.  This is no excption.

The problem with keeping your disputes online only is that the process is so overly simplified that it almost completely cuts out the follow-up options you normally have available to you had you sent your dispute letters via regular mail.  Problems with the online-only approach don’t stop there; we also recommend you keep your disputes to regular, certified mail because:

You don’t get a copy of the dispute

Again, the credit bureaus’ online dispute page simply consists of you disputing an account, leaving a note on why you’re disputing it, and pushing Submit.  Once that’s done, you’re given no physical copy of the disputes for your records – something that can be easily avoided by sending the disputes via certified mail, and keeping copies for yourself.

You give up some of your rights by disputing online

If you take the time to read the Terms & Conditions of using the credit bureau’s online dispute service, you’ll see that by doing so, you’re entering into a binding arbitrary agreement with the credit bureaus that prevents you from taking them to court over your disputes.

If it comes down to it, you don’t want to give up your right to take the credit bureaus to court should they persist in reporting information that you know is inaccurate.

Once you have reviewed your credit report for innacuracies, chances are pretty good that there will be some debts left that you actually do need to re-pay.  There are great programs available to you such as Debt Consolidation and Debt Settlement that can help you eliminate your debt quickly and save you money.

Our Solutions Specialists can help you decide which program fits your situation best.  Give us a call!

1-877-492-4109

repair you credit 

photo by: stephanie in love

Tags: debt settlement, debt consolidation, repair your credit, credit report dispute

Debt Management Tips

debt management tipsDealing with Debt

As the economy has declined, many consumers have been relying on credit sources such as credit cards and home equity loans for everyday spending.

But we’ve come to realize that the days of free-flowing credit are over. Banks and lenders are lowering credit limits on credit cards and scrutinizing new borrowers. If you’ve been living above your means, addicted to credit of any kind, consider this your personal financial intervention!

Face the Debt Music

Debt management is not a one-size-fits-all topic, because every debt-holder is unique. Your debt could be the result of many different circumstances such as overspending, job loss, or medical bills. You have to gauge your own situation and face up to your ability or inability to help yourself.

Bankruptcy

If you’re seriously drowning in debt, the worst case scenario is to declare bankruptcy. This is the debt management option of last resort. Because a bankruptcy can stay on your credit report for up to ten years it will affect many aspects of your life for a long time. If you’re considering this option, you’ll need to consult a bankruptcy attorney for help with some tough decisions. 

Credit Counselors

Anyone who intends to declare bankruptcy must get pre-filing credit counseling from an approved agency within six months before the filing. The agency must be approved by the U.S. Department of Justice in the judicial district where you plan to file bankruptcy. You must also complete a pre-discharge education course in order for debts to be officially satisfied.

Debt Settlement

Debt settlement is another option if you want to avoid bankruptcy. The debt negotiation industry is growing rapidly. These companies are not low-fee, non-profit counselors, but representatives who aggressively work with your creditors on your behalf to reduce debts by 50% or more!

This is an effective strategy that could result in a deep discount on the debt.

Debt Consolidation Programs

You may be eligible to enroll in a debt consolidation program. These are also called one-pay plans, because the agency collects one monthly payment from you. They distribute the money to your creditors after negotiating lower payments and interest rates on your behalf.

A good credit counseling agency should be open-minded to every option you have to improve your financial situation. They should help you create a budget and offer free educational resources.

Correct Bad Habits

In the best case debt scenario, you’re credit rating is still good, but you’re simply living above your means (you know who you are!). Debt is usually the symptom of saving too little and spending too much, a deadly combination. There is no magic formula to make debt disappear. The solution is to permanently change your financial behavior by becoming more disciplined with your money. Is it easy? Absolutely not. But the rewards of living life without a credit addiction include much less stress and better sleep.

debt management tips

photo by: paalia

Tags: debt settlement, debt consolidation, debt management tips

Tips to Get Out of Debt FAST: part 3

tips to get out of debt fastLast week I discused the first two parts to getting out of debt FAST!

Tips to Get Out of Debt FAST: part 1

Tips to Get Out of Debt FAST: part 2

Now it is time to move on to part 3:

Get the Lowest Interest Rates Possible on Your Debt

While you are working to improve your credit, it’s important to be on the lookout for ways to reduce the interest rate on your debt. Whether the debt is a home loan, car loan, credit card or some other debt, getting the lowest possible interest rate will help speed up the time it takes to eliminate your debt. Here are some tips and tools to help you lower your rates:

  1. Refinance Your Mortgage: The general rule is that you should refinance if you can lower your interest rate by 1%. While that’s a good starting point, it is important to also consider how long you plan to stay in the home and whether you need to convert from an adjustable rate mortgage to a safer fixed rate loan. Interest rates are still at historic lows, and it is easy to compare mortgage rates online.
  2. Negotiate Lower Interest on Home Equity Lines of Credit: If you have a home equity line of credit, compare your interest rate with current market rates. If you think you can do better, step one is to call the mortgage company and request a lower rate. While there are no guarantees, it can’t hurt to try.
  3. Lower the Interest on Credit Cards: Debt Consolidation Programs allows you to consolidate all of your unsecured debt into ONE LOW MONTHLY PAYMENT and offer the following benefits:
  • PAY LESS: Better repayment terms are offered by most creditors. Most will lower interest rates, wave late and over the limit fees AND bring your accounts back to current without making up those missed payments. This can save you thousands over the life of the debt!
  • PAY OFF YOUR DEBT FASTER: You’ll be able to pay off your debt in three to five years rather than the average 25 years it could take without our program.
  • REDUCE YOUR STRESS: Our customer’s are relieved when the collection calls disappear.
  • ONE EASY LOW MONTLY PAYMENT: Your credit cards and other unsecured debts are consolidated into one monthly payment so you don’t have to juggle payments.

Although getting to know your debt and creating a plan are two very important steps in gettin out of debt FAST, this third step is the most important one.  Getting your interest rates lowered will make the money you are paying towards your debt go further, and you simply can't beat that!

Would you like to know how we can help you Get Out of Debt FAST?  Click the link below for a FREE Debt Elimination Summary or simply give us a call:

1-877-492-4109  tips to get out of debt fast


Tags: tips to get out of debt fast, debt consolidation, best way to eliminate credit card debt, credit counseling

Top 10 Things You Should Know: Controlling Your Debt

Top 10 Things You Should controlling your debtKnow about CONTROLLING YOUR DEBT!

 

#1 Americans are loaded with credit-card debt.

The average American household with at least one credit card has nearly $11,000 in credit-card debt, and the average interest rate runs in the mid to high teens at any given time.

#2 Some debt is good.

Borrowing for a home or college usually makes good sense. Just make sure you don't borrow more than you can afford to pay back, and shop around for the best rates.

#3 Some debt is bad.

Don't use a credit card to pay for things you consume quickly, such as meals and vacations, if you can't afford to pay off your monthly bill in full in a month or two. There's no faster way to fall into debt. Instead, put aside some cash each month for these items so you can pay the bill in full. If there's something you really want, but it's expensive, save for it over a period of weeks or months before charging it so that you can pay the balance when it's due and avoid interest charges.

#4 Get a handle on your spending.

Most people spend thousands of dollars without much thought to what they're buying. Write down everything you spend for a month, cut back on things you don't need, and start saving the money left over or use it to reduce your debt more quickly.

controlling your debt

#5 Pay off your highest-rate debts first.

The key to getting out of debt efficiently is first to pay down the balances of loans or credit cards that charge the most interest while paying at least the minimum due on all your other debt. Once the high-interest debt is paid down, tackle the next highest, and so on. Another option is to use the Debt Snowball.  This system focuses on paying off the smallest balances first. Either way, make a plan and stick to it.

#6 Don't fall into the minimum trap.

If you just pay the minimum due on credit-card bills, you'll barely cover the interest you owe, to say nothing of the principal. It will take you years to pay off your balance, and potentially you'll end up spending almost three times what you orriginally charged.

#7 Watch where you borrow.

It may be convenient to borrow against your home or your 401(k) to pay off debt, but it can be dangerous. You could lose your home or fall short of your investing goals at retirement.

#8 Expect the unexpected.

Build a cash cushion worth three months to six months of living expenses in case of an emergency. If you don't have an emergency fund, a broken furnace or damaged car can seriously upset your finances.

#9 Don't be so quick to pay down your mortgage.

Don't pour all your cash into paying off a mortgage if you have other debt. Mortgages tend to have lower interest rates than other debt, and you may deduct the interest you pay on the first $1 million of a mortgage loan. (If your mortgage has a high rate and you want to lower your monthly payments, consider refinancing.)

#10 Get help as soon as you need it.

If you have more debt than you can manage, get help before your debt breaks your back. There are reputable debt counseling agencies that may be able to consolidate your debt and assist you in better managing your finances.

NEED HELP NOW? 

Call 1-877-492-4109 Today!

controlling your debt

Tags: debt settlement, debt consolidation, best way to eliminate credit card debt, controlling your debt