How To Get Rid Of Your Debt

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If you find it extremely difficult to manage your money, then you are not alone.  Managing money is something that is not really that easy at times, for so many people. You do not need to feel ashamed if this sounds familiar to you.  More people than not, have an extremely difficult time learning how to manage their money, which is why so many families are struggling each month trying to figure out how in the world they will ever pay their monthly mortgages, credit card payments, loans, etc. Here's some helpful information regarding debt, so that you can start making some changes around your home.

Learning about Debt And Seeking Credit Advice

Debt should not be so scary if you know more about money and debt, you would know that some debt is ok but you will also know which kind of debt you should always stay away from, throughout your entire life. Talk with some of your closest friends about your concerns regarding your debt, perhaps they too have had experience with something just the same, they might have very helpful advice for you, which would be fantastic.

Develop a Budget

This is the first step that you need to take to control your poor financial situation.  Make a realistic assessment of how much money you earn and how much money you spend.  Make an exhaustive list of your fixed expenses that you spend - like your rent, mortgage payments, insurance, car payments.  Next write down your expenses that vary like your clothes, entertainment, your impulse buys.  Write down every expense that you may make or had made in the past however insignificant.  Once the ‘fixed' and ‘variable' expense list is ready you can analyze your spending habits and patterns.  Do you see how many of those expenses could have been avoided or your purchases that you can do without.    Now you can make another list of necessary expenses such as rent, electricity, insurance and food.  Prioritize the other expenses on absolute need basis.  Ruthlessly cut out all the wasteful expenses that do not add much value to you.  At all costs avoid impulsive buying or spending.  All expenses must be well thought out.

Negotiating with your creditors

If you are unable to meet your credit commitments, meet up with the creditors.  Explain to them why you are unable to meet the commitments and try to negotiate easier terms.  Have your payment plans modified to more manageable levels. Do not wait till situation  goes out of control. 

Dealing with Debt Collectors 

Every country has Fair Debt Collection Practices.  Do not try to avoid the representative of the debt collection agency.  Meet up and fix the time, place and frequency of their visits.  Learn about your legal rights. 

Get Credit Counseling

If you are unable to meet up with your payment schedules and create a manageable budget, seek credit counseling.  There are many non profit credit counseling programs.  They can advice you on managing your money and debts, help develop a budget and provide free education and workshops.  They are staffed by certified and trained credit counselors who can help you develop a personalized plan to solve your money problems.  Before seeking assistance from credit counseling agencies check their credentials as you need to share all your financial details with them.

Debt Consolidation

Debt consolidation can help you in consolidating all your debts to a single manageable payment plan.  This may require a second mortgage on your assets as collateral.  The debt consolidation agency may negotiate to lower your interest costs take away the hassles of budgeting and making too many payments to different creditors.  However they will charge a fee as a percentage of your debt.  

By learning how to get rid of your debt early on, you will be setting yourself up for a much healthier, much more successful financial future. Clearing up a great deal of your debt early on will prepare you for a less stressful, much more manageable future financially, which is what everybody is anticipating at some point throughout their lives.

Srinivasan Gopal is an author, syndicated writer and a management professional.  Loves the internet and webmaster of www.internetbusinessprofit.info/affiliate-marketing a website where you can find answers to many of your How To's on affiliate marketing

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