Debt consolidation tips
The news on the economy is definitely not good at all. More and more Americans are losing their homes to foreclosure and thousands more continue to be thrown out of work every single day. The official unemployment rate is 9.8 percent, but the reality is that it’s closer to 20% when you figure those who have already given up on looking for work. And on top of all that, credit card bills can be truly insane, with massive interest rates racking up more and more bills all the time. So what’s a hapless American to do? You need to find a way to manage your debt effectively without going over the cliff, needing to declare bankruptcy or using a debt consolidation service. Not to worry. I’m here to help with some great debt consolidation tips. Here’s what you can do to make it better:
Stop using your credit cards. Yes, it’s tempting to whip out the plastic and pay for the groceries, but all you’re doing is adding to debt that you need to figure out how to pay for later.
Make a list of monthly expenses. Basically, what you need to do is to keep careful track of what it is that you’re buying. It’s amazing how the little things that you think you “deserve” can make massive holes in your budget. For example, even though that $4 latte at Starbucks sounds like it’s a nice deal, the reality is that they add up very quickly and will get you into trouble. Even the candy bar at work to help you get through the day is an expense that can be cut. Look carefully at everything and allow nothing to be sacred. That said. . .
Don’t make yourself miserable. Yes, you need to follow these tips on debt consolidation in order to get yourself out of debt. But if you cut too far, you’ll make yourself so miserable that you’ll end up like someone on a diet who binges because they just can’t take it anymore. Instead of a candy bar every day, try a candy bar once a week. The latte at Starbucks can be a once a month indulgence instead of a daily one.
You don’t need to use a debt consolidation service in order to get your bills renegotiated. If you call your credit card company and explain that you’re having problems with paying your debt, they will generally listen and try to work with you on getting you a payment plan you can manage.
If you choose to use a service for debt consolidation, make sure they’re legitimate. Ask questions, beware of claims that are too good to be true and check with the Better Business Bureau to see if complaints have been filed against them.
Good luck. I know the economy is tough right now, but if you follow these debt consolidation tips, I do believe that you can get through it.