Are you someone whose accounts are being turned down to the collection agencies? Are you getting warning notices from your creditors? If you’re not being able to cope up with your debt obligations due to lack of funds and spiraling debt level, you should be taking some rock solid steps against your debt level. High interest debt, when left unattended, can soar out of control. This cannot only take a toll on your wallet, but can also spoil your credit rating; thereby making you credit unworthy. While there are professional options to pay off debt, there are some other DIY steps too that you can take into account, so as to save your dollars on unnecessary fees and charges. Have a look at some of the DIY debt payoff steps that you might follow in order to get back on the right financial track.
- Determine the total debt amount that you owe: The total debt amount that you owe on your multiple debt accounts should be taken into account and for that you have to sit with a pen and paper and jot down all the principal balance, the interest rates, and the due dates of each account. Unless you know the total debt amount that you have to pay off, you won’t be able to take any solid step against it.
- Check the worth of your savings account: As you’re taking steps to pay off your debts on your own, you should check the worth of your savings account. Do you have enough money to pay towards your debts? If answered no, then you got to boost your savings account before taking the plunge into debt repayment. The savings account should be full enough to act as a cushion while repaying your debt obligations.
- Negotiate with your creditors: You should try to negotiate with your creditors and tell them about the financial hardship that is keeping you from making the monthly payments on time. Unless you share your worries, you won’t be able to deal with them and repay them with ease. The creditors might help you with an alternative debt repayment plan through which you can repay your debts with ease.
- Stop using your credit cards: You should stop using your credit cards if you want to get out of debt systematically. Unless you stop racking up more and more debt on your cards, you won’t ever be able to get out of the cycle. Stuff your wallet with cash and leave your cards at home in order to live debt free. Also save money to your fullest so that you may have an emergency cushion that will work in your favor during odd situations.
Therefore, when you’re searching for options to become debt-free, you may choose the above mentioned options. Take out a copy of your credit report. Time to check the negative listings that are dropping down your score.
-By Benjamin Beckwith