Get help for debt reduction

... or go back

It is not that only debt consolidations agencies and certified debt counselors can help you in debt reduction. You can do it yourself if you have determination and proper planning. In order to proceed in the right direction you should follow the steps cited below:

1.Have a clear picture of your debt load-

This is the first and the most important step towards debt reduction. Take a piece of paper and jot down the loan balances, associated interest rates, minimum monthly payment amounts of all your debts including personal loans, auto loans, payday loans and credit card debt. You may omit your mortgage loan as this kind of loan generally has long repayment term and for this time being you can focus on the other loans that you can repay as soon as possible.

2.Fix your budget-

After estimating your current debt load, look at your budget and determine how much you can use towards debt reduction. For doing that, first calculate your disposable income i.e. your monthly income minus the tax payments and then subtract the amount of mortgage payment or rent, expense on groceries, utilities, insurance and childcare. This way, finalize the amount that you can spend monthly for debt reduction.

3.Start negotiating with creditors-

Contact your creditors and ask for lower rate of interests. This may yield positive result especially if you have a record of paying your dues on time. Moreover, in today’s competitive market no financial institution wants to lose a stable customer.

4.Consider balance transfers-

You can transfer your old high interest credit card debts to new low interest credit card accounts. By doing this you can save a lot of money on interest payments.

5.Think about debt consolidation-

Thoroughly scrutinize your current debt situation and investigate whether a debt consolidation loan can help you in quick debt reduction.

6.Be consistent in your efforts-

Every month try to attain your repayment goals. It is possible that the amount that you spend towards debt reduction will vary from month to month. But, do not lose consistency in putting your best effort towards paying off your debts. 
Article author: Jason Holmes - click here to see more articles by this author

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