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.
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.
What are the credit card debt reduction tips?
There are 5 credit card reduction tips to watch out for.
13 Forgotten ways to eliminate your household debt
- Re-shop for auto, life and home insurance to see if you can bring down the premiums and other costs to any extent. This would certainly help you save some and pay towards reducing your debts.
- Drop all unnecessary expenses such as newspapers, magazine subscriptions, eating out, shopping, etc. Anything that is not a necessity should be strictly avoided unless and until you are completely out of debt.
- Try to buy groceries and other necessities in bulk to have good discounts. You can have tremendous savings if you buy stuffs like meat, bread, vegetables, eggs, bread in bulk or for a month's need.
- Downgrade or get rid of completely of your cable package if there are so many channels that you seldom watch or you don't watch TV altogether.
- Packaged cereals are always expensive. You can switch to oatmeal, fruits, eggs etc. Besides bringing some good savings it'd also provide you with more nutritional value.
- Stop hosting all in-house parties if you feel your budget is not permitting or pressurizing you to make huge purchases.
- If you eat out, do away with costly meals. Always try to share large entree or have small appetizers than costly meals. Also, try to skip soft drinks and quench your thirst with water. If possible skip the extras too.
- See if you can trade services with your friends. Perhaps, stuffs like haircutting, babysitting, handyman, photography, car wash, pet-sitting etc.
- Switch off the lights, fans, ACs and thermostats whenever you are not at home. You can just leave the headache and program your thermostat for some savings.
- Do aerobics and free-hand exercises instead of paying hefty monthly fees in gyms. Just walking at an average speed for 1 hour a day can help you reduce 300-350 calories.
- Arrange homemade foods for any party you host at your place. Avoid buying prepared foods from outside.
- Get a part-time or seasonal job to boost your income and use that additional money towards eliminating your debts.
- Disconnect your phone service at home if you have more than one or the bills are burdensome on your pocket.
Tips to negotiate and reduce your debt
Check out the 13 tips which can help you negotiate your dues successfully.
To avoid getting a credit hit, negotiate a "Pay for delete" agreement with your creditors so that your entire account detail is removed from the credit report. Alternatively, you may request creditors to update your account status as "Paid in full". Once the creditors agree to what you've requested, let them provide you with a written agreement of the same.
5 Steps to eliminating debt while studying in collegeDebt is a term that causes an immediate feeling of discomfort to all of us. Graduate school debts manage to make us feel even worse because of the sense of uncertainty it essentially entails. Here are ten ways how to become debt-free while in college.
- Aim to become debt-free - This is the most important and the first step towards reaching your target. What you need to do is plan flawlessly as to what the course of action must be; what you need to immediately do or stop doing which in turn will reduce the drainage of funds, which could be channelled into paying the debt off. With a clear road map, a fair idea about the challenges ahead, being fully aware of your strengths and weaknesses and putting them to proper use you can stay motivated towards achieving your target. Always remind yourself that what you are doing is in order to have your freedom.
- Look for a part-time job - You must look for another income-yielding part-time job to occupy your usable unemployed hours of the day instead of wasting them in idle languor. The extra money you earn will definitely speed up the process of debt-clearing by leaps and bounds. Instead of just thinking of saving, you must have your mind open for the other appropriate option which is increasing your income, an option which most people miss out on. So start with something as simple as selling things on Ebay or Amzon. Remember that you can do amazing things with your skills which will not only earn you money, but also build you a reputation.
- Apply for Scholarships and Fellowships - Apply for scholarships and fellowships without pondering much over it. Hesitation will only delay the process and time and money will be lost. Such grants can not only cover your tuition fees but also do wonders to your bank balance and your standard of living without having to do much on your part except for applying for them and providing the funding agencies with timely update.
- Choose your subjects with a professional outlook - Be clear about your employability after having graduated with the subjects you have chosen for your major. Marketability of the subjects must be kept in mind in order to land a job that would pay for the efforts you have put in. Just because you love literature does not mean literature would fetch you a reasonable pay package. Be practical while choosing you’re major.
- Be financially responsible - There is a need to be financially responsible when you are taking even the smallest of decisions, for example going out for dinner. You need to make smart choices in where you live, what you spend on and things you invest in. Being responsible in dealing with your finances can give you a big edge when it comes to clearing your debts.