Is It Best To Do It Yourself?
Author: Kevin DawsonThe financial turmoil in the past 18 months has hit aboslutely everybody hard in the pocket. Most people are now at a stage where you may be considering some form of debt relief. But where do you start? How many times have you turned on the tv. and seen the adverts claiming to "clear all your debts today!" Or seen the full page spread in the National News paper "Legally clear your debts without it costing you any money!" Of course these adverts are usually quite misleading and usually end up getting you even more in debt. The people who make these claims don't do anything for free and usually require an up front fee added to your already overloaded credit card! Just this past week the Office of Fair Trading in the UK has closed over 20 websites from so called Free Debt Help companies being quite uneconomical with the truth.
There are many options to help you, but the best option may actually be you helping yourself.
Here are a few suggestions for self help regarding debt relief and to help you become more solvent.
First of all, don't stop communication with your Creditors. While it is a natural response to stop answering the phone and let the mail stack up unopened, this doesn't solve anything. It's no good burying your head in the sand, as debt will not magically disappear on its own. It's important to keep in contact with your creditors. Explain your situation to them. You are not the only person in debt. Even the biggest bankers in the world managed to get themselves into massive debt and they are the people who should have known better! In many cases, your Creditors will work with you to reduce your debt by lowering the interest rate and waiving over-the-limit and late fees and rolled up interest. They may even offer you extended terms with a reduced payment or even a payment holiday but be advised, if you take the payment holiday, then you will still owe the non paid interest accrued durng the holiday period. .
Secondly, stop using all your credit cards. Whether you file for bankruptcy or sign on with a credit counseling service or agree a debt settlement, all of your Creditors will demand that you give up your credit cards. Do it yourself now. Limit yourself to just 1 credit card or try just using a Debit Card, that way, if the money isn't in your account, then you can't spend it!
Thirdly, make getting out of debt a major priority, and try and work toward reducing your debt as though you were already working with a credit counseling service. It only takes a bit of self-disipline!
(Create a budget sheet - draw a line down the middle of a piece of paper, on 1 side list all your outgoings mortgage, rent, insurance, food, utilities, credit card bills, expenses etc, etc, On the other side of the paper list all your incomings, wages, and any additional incomings. Don't forget to total up each coloum. Now take away your outgoings from your incoming and this will give you your disposable income.)
Basically this is how credit counseling service works: The CCS will contact all your creditors and give them a copy of your monthly budget ( income & outgoings)and will try to agree a regular monthly payment. You then make one regular payment that you can afford to them each month, and the CCS will disburse your money to the creditors. When one Creditor is paid off, the extra money is used to increase payments to your other creditors.
It's the same for Credit Card bills, if you have extra money one month, put it toward one of your CC bills. As soon as you have paid off that CC bill, take the money you would have spent on that one bill and apply that every month to another CC bill. By continually making larger payments than what is owed, the credit cards will be paid off faster. Do not just pay the minimum amount Do you realise, if you have a $2000 credit card bill and just pay the minimum amount each month, that it will take you 22 years to clear your debt!!!
Some of your Creditors will tell you that because you are not a professional negotiator, they will not accept any negotiated reduced payments, don't be put off by this. At the end of the day something is better than nothing and even your Creditors know that you can't get blood out of a stone!
If you are still unsure about taking on your Creditors yourself then there are numerous government funded agencies and organisations both in the USA, Europe and the UK that will help with negotiations with your Creditors.
By you reading this article means that you can use the internet. So please research all the free help resources that are available on the internet.
Always remember, you are not the only person in debt, there are millions of people in the same boat all around the world.
About The Author:
Worked for 20 years in the Debt Industry in the UK Now
developing free Debt Help sites like www.yourcreditbuilders.com
& www.expatdebthelp.info .
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This section contains numerous articles to help you mange your money better. With the help from some of these articles you may find that you do not need Payday loans.