How can I get someone to pay off my debts?

By Good Nelly

Ask Nelly

Are you thinking of "How can I get someone to pay off my debt?" Well, it's you who has to pay down your debt. Nobody else will do it for you. However, you may take financial help from close family members or friends. Alternatively, you can seek professional help or follow the do-it-yourself plan to pay your way out of debt.

How to pay down debt with professional help

If you're concerned about "how to pay my debts with professional help", you may look out for programs offered by debt relief companies. Just find out how to pay down debt using such programs and choose the right one for you.

Debt consolidation program: It's an option worth considering when you have a fixed source of income and you can carry on with monthly payments at reduced rates of interest. This is where a representative from the debt relief company negotiates low interest rate with your creditors. With this option, you'll be able to reduce the burden of several larger payments and replace them with a single monthly bill.

Debt settlement program: When your monthly debt payments are out of your control, and you're in some sort of hardship such as job loss or medical problems, get enrolled in a debt settlement program. It's not about negotiating low interest rates. Instead, you can expect to have your outstanding balance reduced by 40-60%.

With a settlement program, you can get rid of the burden of monthly payments to creditors. Instead, you make a single payment to the company which saves it in a trust account opened in your name. When you've saved enough, the company will negotiate with your creditors so that they reduce your balance and accept a single lump sum payment.

Other than debt relief companies, there are credit counseling agencies which offer help and advice on how to pay down debt and achieve financial freedom. Take a look at the programs offered by credit counseling agencies.

Credit counseling: This is where a credit counselor analyzes your financial standing and offers you advice on how to manage your bills and have better control over your money. The counselor helps you prepare your budget and provides you with tips to repair your credit score as well.

Debt management: When credit counseling isn't enough for you to manage your debts and you need additional help, debt management is what you should choose. This is a program wherein a credit counselor negotiates with your creditors to help you obtain low rates on your bills. The counselor can also have your late fees or over-limit charges reduced or waived off. This is to make sure that you can afford to pay off the outstanding balance on your accounts.

How to pay down debt on your own

If you're thinking of "How to pay my debts on my own", try out the strategies explained below.

• Snowball method: This is where you start paying off your bills from the lowest balance to the highest. That is, you make extra payments on the account having the lowest balance while paying the minimum on other bills. As soon as you clear the lowest bill, start making extra payments towards the account having the next higher balance and so on till you're debt free.
• Avalanche method: This method is all about paying your high interest bills faster than the ones having low rates of interest. So, you start off by paying extra on your highest interest account while paying the minimum on the low interest bills. When the highest interest account is paid off, start paying extra towards the account having the next higher rate. This way it'll be easier for you to find your way out of debt.
• Do-it-yourself plan: It's a self-help plan using which you can consolidate, settle or manage debts on your own. For further information, check out the do it yourself section.

Whether you choose professional debt help programs or pay your debts on your own, you need to understand how each option can work in your favor. It'll be easier for you to choose the right solution to your debt problem and get the maximum benefit out of it.