how to get rid of your debt

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How to Get Rid of Your Debt

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Page 1: How to get rid of your debt

How to Get Rid of Your Debt

Page 2: How to get rid of your debt

If you find it extremely difficult to manage your money, then you are not alone. Managing money is something that is not really that easy at times, for so many people. You do not need to feel ashamed if this sounds familiar to you. More people than not, have an extremely difficult time learning how to manage their money, which is why so many families are struggling each month trying to figure out how in the world they will ever pay their monthly mortgages, credit card payments, loans, etc. Here's some helpful information regarding debt, so that you can start making some changes around your home.

Page 3: How to get rid of your debt

Learning about Debt And Seeking Credit Advice

Debt should not be so scary if you know more about money and debt, you would know that some debt is OK but you will also know which kind of debt you should always stay away from, throughout your entire life. Talk with some of your closest friends about your concerns regarding your debt, perhaps they too have had experience with something just the same, they might have very helpful advice for you, which would be fantastic.

Page 4: How to get rid of your debt

Develop a Budget.This is the first step that you need to take to control your poor

financial situation. Make a realistic assessment of how much money you earn and how much money you spend. Make an exhaustive list of your fixed expenses that you spend - like your rent, mortgage payments, insurance, car payments. Next write down your expenses that vary like your cloths, entertainment, your impulse buys. Write down every expense that you may make or had made in the past however insignificant. Once the fix the debt and 'variable' expense list is ready you can analyze your spending habits and patterns. Do you see how many of those expenses could have been avoided or your purchases that you can do without.

Page 5: How to get rid of your debt

Negotiating with your creditorsIf you are unable to meet your credit commitments, meet up

with the creditors. Explain to them why you are unable to meet the commitments and try to negotiate easier terms. Have your payment plans modified to more manageable levels. Do not wait till situation goes out of control.

Dealing with Debt Collectors. Every country has Fair Debt Collection Practices. Do not try to avoid the representative of the debt collection agency. Meet up and fix the time, place and frequency of their visits. Learn about your legal rights.

Page 6: How to get rid of your debt

Get Credit CounselingIf you are unable to meet up with your payment schedules

and create a manageable budget, seek credit counseling. There are many non profit credit counseling programs. They can advice you on managing your money and debts, help develop a budget and provide free education and workshops. They are staffed by certified and trained credit counselors who can help you develop a personalized plan to solve your money problems. Before seeking assistance from credit counseling agencies check their credentials as you need to share all your financial details with them.

Page 7: How to get rid of your debt

Debt ConsolidationDebt consolidation can help you in consolidating all your

debts to a single manageable payment plan. This may require a second mortgage on your assets as collateral. The debt consolidation agency may negotiate to lower your interest costs take away the hassles of budgeting and making too many payments to different creditors. However they will charge a fee as a percentage of your debt.