subject: Debt Solutions- What Can You Do About Your Debts? [print this page] Debt solutions plague almost every societyDebt solutions plague almost every society. Likewise, most countries attempt to create programs that will encourage consumers to gain control of their debts before their debts gain control of them. Of course, it is easier said than done when you are knee deep in a situation that is consuming your discretionary income. Never fear. No matter where you are at on the debt cycle, there are things you can do to improve your standing, restore your credit, and break out of debt once and for all.
Arrange a budget. Budgeting principles are very simple in nature. Never spend more than what you are taking home. The thing about debt is that it will never allow you to get into a situation you cannot get out of. To clarify, if you are living on 30,000 pounds per year, you may incur debts of two to three times that, but with proper discipline you will always be able to shave off the formidable years ahead by making your payments on time, avoiding late charges, and attacking the principle however you can.
Inventory your expenses. You can't really get out of debt until you know exactly how much you are in. Setting a monthly budget helps because then it enables you to figure up how much payments on outstanding loans and bills will be for the same. Once you have taken a good inventory of all your debts that need to be paid off, then you are able to set an installment plan that will work off your debt while also allowing you to live.
Pay more than the minimum. Once you have taken your inventory of debt, the next logical step is to not make your minimum payments. Always pay more. Why? Because minimum payments are designed to keep you in debt based on ballooning interest rates. It is a losing proposition all the way. If you can make twice the minimum, you'll be out of debt twice as fast as you would making the minimum payment.
Seek out alternatives for tight budgets. When more advanced solutions are needed, do what you can to avoid bankruptcy. This option does not spell the end for you, but it does make it very hard for you to restore credit and obtain loans of any kind. After all, who wants to loan money to someone who can't pay? It is far better to seek help from an individual voluntary arrangement (IVA) or a deed of trust. Options such as these work with your creditors to establish manageable repayment plans.
Remedy the pattern. Debt happens as a result of poor financial behaviors. Work on fixing you as you work to eliminate debt, and the end will come before you know it.
by: Gen Wright
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