Eliminating Debt on Your Own

Unsecured debt is becoming a big problem for the average American consumer. Credit card debt is now the third largest source of debt in the U.S. and the average credit user owes over $15,000 to their creditors. When you rely too much on your credit cards to get by when you have shortfalls in your budget, you wind up with a mountain of credit card debt to pay back. As revolving debts, the amount you owe on your monthly credit card bills will vary by how much debt you owe in total for each account. As a result, when your credit card debt gets out of control, so do your bills.

For most of us, the idea of reaching out for help when it comes to handling financial issues should only be used as a last resort. Financial problems are the number one taboo topic in our society according to recent polls. With that in mind, it’s not surprising the most consumers will consider every available do-it-yourself option for debt relief before reaching out for help. But can you really solve a debt problem on your own? It all depends on the specifics of your financial situation. When it comes to your personal finance, Consolidated Credit can help with things like getting you the right credit card help.

Start by considering whether or not your debt can be reduced using a targeted debt reduction strategy in your budget. Review your budget to temporarily cut all unnecessary expenses and generate as much free cash flow as possible. Now direct all of that extra cash to making an extra payment on one credit card debt at a time every month. Each debt you pay off in-full frees up more money in your budget by eliminating one bill. This allows you to pick up momentum for reducing debt with each debt you eliminate. Eventually, you can pay off all of your debts and reinstate any cut monthly expenses.

BDO explains the types of options to deal with debt

If you either have too much debt to reduce it with budget or you can’t generate enough cash flow to implement the strategy, then you will need to find some kind of payment alternative. If you’re not sure, use a free online credit card debt calculator to see how fast you can eliminate debts using an extra payment strategy. If it would take more than 5 years to pay off your debt in-full, then you need to find an alternative debt solution. It’s still possible to address your debt problems on your own as long as you have good credit scores, but you will need to research do-it-yourself debt consolidation. With good credit scores, you can qualify for a credit card balance transfer or debt consolidation at a low enough interest rate to get out of debt effectively.

On the other hand, if you have bad credit scores, do-it-yourself debt consolidation can’t work for you because you don’t have strong enough credit to qualify for the low interest rates needed for debt relief. In this case, you would be better off seeking professional help to address your issues with debt. You can start by contacting a nonprofit credit counseling agency to discuss options for debt relief with a certified credit counselor. 

About the Author:

This article is composed by Elaine McPartland who is associated with “Consolidated Credit” as their community writer. In the above article, She has mentioned worst dangerous signs that shows your debts are out of control. You can add her at her google+ profile.

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