If you're in stress dealing with excess debt, it's time you choose a debt elimination program to help you avoid further crisis. It'll help reorganize your financial life and give you the chance to save a considerable part of your hard earned money.
To eliminate debt, first of all, calculate how much you owe in total. Then go for no-obligation free debt counseling with a debt relief company. Counseling helps in assessing your financial situation so that you'll come to know the right way out of debt.
6 Debt elimination programs that may work for you
Check out the 6 ways to eliminate debt and get an idea of how each option can work for you.
1. Debt consolidation program
2. Credit card debt elimination
3. Bill consolidation
4. Payday loan consolidation
5. Debt management (DMP)
6. Do it yourself debt elimination
5 Debt elimination mistakes you should avoid
While you're trying your best to eliminate debt, make sure you avoid making mistakes such as:
1. Not following a budget
2. Canceling credit cards
3. Paying only the minimum
4. Falling into scams
Debt elimination letter scam:This is where a debt elimination agency sends you a letter which you can show your creditors and have your bills eliminated. In return, you'll have to pay a large fee to the agency. Bond for discharge of debt or Redemption certificate is the name given to such a letter which claims the debt as void just because many fees charged by creditors are illegal.
Stealing your personal details:This is where you come across an internet ad promising to resolve your debt problems. They'll ask you to provide your personal details along with certain fees. In return they'll offer you a document that is expected to release you from your debt burden. But your debt actually exists and the scammers have stolen your identity using which they can commit other types of frauds.
5. Using credit cards instead of cash
With debt elimination programs, you can get rid of your bills and avoid harassment by creditors and collection agencies. All you need to do is, create a realistic budget, choose the right program and make payments on time. You can thus get out of debt and have better control over your money.