You’ve seen the ads and heard the commercials touting the best way to get out of debt forever in a few short months. While these promises made by the unending number of companies popping up to help you eliminate debt may sound too good to be true, there is one thing you can take to the bank. There are ways for you to get out of debt, however unless you are in dire straits you don’t need the help of a third party company to accomplish this goal. In fact for a large portion of the population getting out of debt is less about money than it is about strategy and lifestyle changes. Here we will cover how you can get out of debt on your own terms.
- Take inventory – There is no magic debt elimination method that is right for each person. In order to get out of debt while retaining as much control over the process as possible it is necessary for each person to sit down with their own finances and figure out exactly where they stand and what they need to do to accomplish their goal. Determine how much debt you have as well as every available dollar you can apply toward eliminating your debt. Be honest with yourself otherwise you may end up picking a strategy that will not work in the long run.
- Establish a plan of action – Once you know where you stand in terms of debt and available income you are in a position to determine which debt elimination method is right for you. Remember not everyone has the same circumstances so make it a point to be true to yourself in order to begin eliminating your debt.
- Understand the risks – There are some people that will not be able to eliminate their debt on their own in the traditional way. With thousands of people out of work and struggling to make it from paycheck-to-paycheck, some people will have to try debt relief methods that carry a bit of risk. Before you begin any process, take the time to carefully review and understand what you are getting into before proceeding. Your debt is still your responsibility therefore it is important to retain as much control as possible throughout the process.
- Try it yourself – Many of the companies offering services from credit counseling to debt settlement are providing services that each person can do on their own. It might be easier to pay someone else to deal with your creditors and handle your financial affairs, but in doing so you will pay fees (sometimes very high fees) as well as lose control over the situation. There are literally hundreds of websites that offer free information about various “get out of debt” methods, review the information available to see if you can produce the same results on your own.
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Eliminating debt is necessary to ensure financial security in the future. For many people the thought of tackling their debt on their own can become so intimidating they choose to do nothing or hire a third party company to represent their interests. Both options are fraught with risk and negative consequences to your long term financial situation. This is one time in life when it is better to take the bull by the horns and simply deal with your problem instead of hoping it will go away on its own or through the help of a third party.
Guest post by Debbie Dragon, a freelance writer providing articles for Billeater.com, a site that helps it’s readers save money, with unique money saving tips and tricks for your busy lifestyle.