Are you completely overwhelmed by your debts? Credit card debt is so easy to get into but it is very difficult to get out of debt. There are companies and organizations that are able to offer services to help you. How do you know if it is time to get help from others?
Calculate your debts and minimum monthly payments. When you look at your debt and total up your minimum monthly payments, compare that to your income. Are your minimum payments more than 40% of your monthly income? Can you afford to pay more towards your debt each month? Can you sell some things that would help you pay down your debt quickly? Can you sell vehicles if they are unaffordable?
If the answer to these questions are no, you might need to get help with your debts. Two great options are debt consolidation and debt management. You should always be careful, do research and find the best options that won’t just take your money.
Debt consolidation with a credit card. The best option for this is sometimes a 0% interest credit card where you move your high interest loans to this card. The cautions would be to make sure that you can pay off this credit card before you have to pay the interest. And, with debt consolidation, you should be sure to quit spending. If you don’t quit overspending this will just make your situation worse.
Debt consolidation. This is an option if you decide to stop spending on loans and credit cards. This only works if you commit to paying off your loans. Also, you should be cautious with debt consolidation companies. Some of them say to start paying them right away and then they will work with your creditors to get them to accept lower payments. Do your research and make sure that you are using a reputable company. Make sure your other loans are paid off before you start paying for this. These companies can ruin your credit if they don’t fulfill the promises they make.
Debt management. There are also debt management companies. This is where you go in and they help you go over your loans and payments. They will sometimes negotiate with your creditors to accept less money. This can also negatively affect your credit. You should only do this if it is a last resort before bankruptcy. Some companies will help you figure out how to pay down your debt without the negotiation. They will only help you make a plan. They can also help you decide if it is time to declare bankruptcy.
If you are completely overwhelmed by your debt and look at your situation and don’t think you can do anything, you might benefit from the services offered by these companies.
I do offer debt management help and make customized plans to help you learn to manage your debt. Contact me through my contact page for help.