Debt Consolidation – 5 Action Steps To Take
Does it feel like everyday you’re falling deeper and deeper into the bottomless pit of debt!? You’re not the only one who feels this way. Thousands and thousands of people are just like you. They bought cars, TV’s, homes, food and whatever else they needed (plus a trip to Vegas maybe here and there!), and now they’re in over their heads. Debit consolidation is the answer, and there are just five easy steps.
Step 1 – Just How Bad Is It?
The first thing to do is take a good, long look at your finances. Debt consolidation is a great solution for those who have no other alternatives but to file bankruptcy. It’s meant for folks who can’t make their monthly payments without breaking the bank. It eases the pain and gives you a little leeway.
Before you apply, you’ll have to get all your finances in order. This means calculating your income, assets and how much each month is going to your creditors. Get recent statements of how much you owe in total, and make sure it has information like interest rates. You’ll need all of this to submit to the credit counseling folks.
If it’s so bad you can’t comfortably make your monthly payments, you’re ready to seek help.
Step 2 – Ask For Help
Don’t be afraid… You’ve done bad, now it’s time to make amends. There’s no shame in asking for help out of your debt troubles. Talk to a representative of a credit counseling organization and apply for their services.
You’ll have to submit all of your financial paperwork. This is a good time to get your questions answered about what you can expect. They’ll also be able to give you advice on whether a secured or unsecured loan will be best for you, or other things you can do to alleviate your debt stresses.
But they won’t be able to offer you a quote just yet.
Step 3 – Get An Offer
After you apply, you’ll have to wait. They’ll be looking at your situation closely and making an accurate assessment of what they can do for you. This may take several days or weeks, but once they’re done, they’ll give you an offer. You can choose to accept it or not.
Usually, they’ll give you an idea of how low they can get your monthly payment, and what they can do about your high interest rates. The negotiation hasn’t begun yet, but they can usually give you a good estimation of what you can expect. They’ll also be able to tell you how long it will take to get your debt paid off.
Step 4 – Get The Ball Rolling
Once you agree to their terms, they’ll start contacting your creditors. This part of the process may take some time, but they’ll let you know how things are progressing. This is a good time to make use of their resources to find other ways of saving money and managing your finances.
Step 5 – Pay Your Bills!
Here’s the toughest part! Once you’ve got your bills into one easy monthly payment with a low interest rate, all you have to do is pay them faithfully until the debt is gone. Then, just count off the days until you’ll be debt free!
