Getting Out Of Debt Is Hard, But Worth It
The amount of Americans in debt is astronomical and amplifying all the time
. The average family debt is $15,700 in credit cards alone. This does not include mortgages, auto loans, or student loans, etc. The average 60 day delinquency rate is 4.27% and the average default rate is 13.01%. These are staggering numbers, indeed. It is no wonder so many Americans are cautious about debt and how to get out of it.
Numerous individuals want the quickest way out of debt that is possible, but, this usually means bankruptcy. Bankruptcy is not the easiest, nor best way out from mountains of debt. It is critical for all of us in debt to live up to our financial obligations as much as is possible. But, how do you do it?
The first place to start is to cut back on your expenses. This means to make a budget and cut out all the unnecessary spending. This can be anything from cutting out buying your lunch everyday to unnecessary trips to town and back.
Then you need to stop using the credit cards immediately, cut them up if you have to. Next is to start up a payment plan starting with the highest interest rates first and work on down the list, paying them off in order.
A person might even consider a debt consolidation loan. This can make sense if you are struggling to make all the monthly payments on all your debt as you can bring them all under one payment, saving money on interest.
In some cases, creditors may allow you to set up a payment plan that is more in line with what you are able to pay. Don't be afraid to ask. There are many credible debt counseling services out there that can help in this. These businesses do the negotiating for you and set up a plan that fits your budget, usually paying off the debt in a few years.
The best tool you have in battling large debt is you. You have to be serious about getting out of debt and be aggressive, you have to mean it. This may involve some rather lean years, but it is well worth it. Look for ways to make additional money, the Internet is full of ideas and be creative. Putting all your extra income toward the debt that you can possibly spare will go a long way toward independence.
by: Karri Owens
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