The world economy has recently gone from bad to worse. Nearly everyone is experiencing economic difficulties. It is not uncommon to pick up a newspaper and read about massive bank and corporate failures. Personal bankruptcy court dockets, as you can imagine, are increasingly crowdwd. But, where do those who want to get out of debt without declaraing bankruptcy turn for help?
As overpowering as it may seem while in the middle of financial difficulties, it is possible to get out of debt. Credit counseling experts advise the first place to start is to realize the necessity of formulating a credit reduction plan and in being determined to stick to the plan.
In creating a plan will need "get real" about your debt. Do you know exactly how much you owe? Or, what interest rates you are paying on credit cards, and on your mortgage or your auto loans? Start by gathering and recording all of this information.
Next, list all of the day-to-day living expenses and the financial obligations you incur each month. This means noting all of the monthly payments you owe on credit cards, mortgage (or rent), utilities - every expenditure you incur on a regular basis. Be thorough with this as it is very important. You cannot make a plan for debt reduction without a thorough understanding of your current financial obligations.
After you have determined your current debt level it is time to get professional help. Make an appointment with a credit-counseling agency that is on the approved list (has the met the requirements of the US Bankruptcy Code). There are two reasons for this: accountability and guidance. When you meet with the agency take with you the list of debts and expenses you have prepared. After assessing your situation, they will make recommendations and, in some cases, work with your creditors to help you resolve your debt.
The key to overcoming debt is to make a plan and commit to it. Even though you may feel like you are drowning in a sea of overwhelming debt, any size debt can be eliminated if you are determined to do so.
As overpowering as it may seem while in the middle of financial difficulties, it is possible to get out of debt. Credit counseling experts advise the first place to start is to realize the necessity of formulating a credit reduction plan and in being determined to stick to the plan.
In creating a plan will need "get real" about your debt. Do you know exactly how much you owe? Or, what interest rates you are paying on credit cards, and on your mortgage or your auto loans? Start by gathering and recording all of this information.
Next, list all of the day-to-day living expenses and the financial obligations you incur each month. This means noting all of the monthly payments you owe on credit cards, mortgage (or rent), utilities - every expenditure you incur on a regular basis. Be thorough with this as it is very important. You cannot make a plan for debt reduction without a thorough understanding of your current financial obligations.
After you have determined your current debt level it is time to get professional help. Make an appointment with a credit-counseling agency that is on the approved list (has the met the requirements of the US Bankruptcy Code). There are two reasons for this: accountability and guidance. When you meet with the agency take with you the list of debts and expenses you have prepared. After assessing your situation, they will make recommendations and, in some cases, work with your creditors to help you resolve your debt.
The key to overcoming debt is to make a plan and commit to it. Even though you may feel like you are drowning in a sea of overwhelming debt, any size debt can be eliminated if you are determined to do so.
About the Author:
Eileen King is a home-based freelance writer whose areas of interest include personal finance, online college education, and professionally and career-focused online degree programs for working adults.
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