How Can I Eliminate My Debt?
I want to eliminate my debt! Help!
People who are knee-deep in debt are desperate for answers on how to eliminate debt, which is why they search the internet for the answers. If you happen to be one of those desperate debtors, you should know that it could take time. Why? It depends on how much you owe and the efforts you exert to get rid of it all completely. If you like to eliminate your debt, always exert every effort, because every effort you put in counts. Every effort is important.
So, what are the ways to legally eliminate debt? Here are some tips to follow.
1. Budget, budget, budget.
Plan a realistic budget which enumerates how much of your money goes to which. A budget can be a helpful and vital tool for individuals who are having a difficult time keeping track of their money. Even corporations big and small and governments are racking their brains for a budget, so only don't think that budgeting is only for people seriously in debt.
It's easy to create a realistic budget. Just write your monthly earnings, as well as how much you should spend on monthly expenses like water, utilities, food, transportation and others, then spend only within the budget you allotted for each. Of course, there will be times when you will have to spend more on a certain thing, like heating bills in the winter. But what is important here is you know exactly how much you earn and how much you should be spending for every need to keep yourself from overspending.
2. Sell unneeded assets.
If you have some belongings that you can replace with cheaper yet more efficient ones, such as cars, you should sell them and have the income you earned from it towards your debt payment. Replace your expensive cars with a more inexpensive, energy-saving ones.
Also, gather some unwanted belongings and hold some sale. Or sell them on eBay. The money made from it will need to be for your debt.
3. Cut back on unneeded expenses.
Many people don't realize just how much they unconsciously spend on certain expenses that are not necessary. If you take a look at how much you spend on them and stop this habit, you will be glad to see how much you will be able to save and how it can help you lower your debts. For example, cut off any monthly magazine and cable subscriptions you have. These things, if you think about it, are not so important, and yet, take away a few hundred dollars a year.
4. Arrange a payment plan with your creditors.
Tell your creditors your situation and tell them that you're doing your best to pay off your debt. Tell that you need an easier payment schedule, so you can easily pay off your debts.
The Fair Debt Collection Practices Act serves to protect you, the debtor. This law forbids debt collectors from contacting you before 8 am, after 9 pm, and during work hours if the debt collector knows that your employer doesn't permit these calls. This law also keeps them from any form of harassment, lies and dishonorable practices towards you when collecting your debt. Lastly, they should honor your request if you send them a note telling them to stop harassing you.
5. Go for a credit counseling service.
If a self-help plan is not working for you, turn to a credit counseling service to help you plan a budget and reduce, and eventually eliminate your debt. There are non-profit credit counseling programs out there, but be careful, though, because some of them have hidden charges which do not help at all.
6. Make more money.
Turn to other sources of income if you want to pay more of your debt. For example, apply for a secondary job or open a business - anything that will increase your monthly income.
There are many more ways to eliminate debt. Of course you should wait until all your debt is paid off. Just keep going.
If you want more tips, visit my personal finance blog. It has lots of ways to teach you how to erase debt, deal with bankruptcy, and many more.
People who are knee-deep in debt are desperate for answers on how to eliminate debt, which is why they search the internet for the answers. If you happen to be one of those desperate debtors, you should know that it could take time. Why? It depends on how much you owe and the efforts you exert to get rid of it all completely. If you like to eliminate your debt, always exert every effort, because every effort you put in counts. Every effort is important.
So, what are the ways to legally eliminate debt? Here are some tips to follow.
1. Budget, budget, budget.
Plan a realistic budget which enumerates how much of your money goes to which. A budget can be a helpful and vital tool for individuals who are having a difficult time keeping track of their money. Even corporations big and small and governments are racking their brains for a budget, so only don't think that budgeting is only for people seriously in debt.
It's easy to create a realistic budget. Just write your monthly earnings, as well as how much you should spend on monthly expenses like water, utilities, food, transportation and others, then spend only within the budget you allotted for each. Of course, there will be times when you will have to spend more on a certain thing, like heating bills in the winter. But what is important here is you know exactly how much you earn and how much you should be spending for every need to keep yourself from overspending.
2. Sell unneeded assets.
If you have some belongings that you can replace with cheaper yet more efficient ones, such as cars, you should sell them and have the income you earned from it towards your debt payment. Replace your expensive cars with a more inexpensive, energy-saving ones.
Also, gather some unwanted belongings and hold some sale. Or sell them on eBay. The money made from it will need to be for your debt.
3. Cut back on unneeded expenses.
Many people don't realize just how much they unconsciously spend on certain expenses that are not necessary. If you take a look at how much you spend on them and stop this habit, you will be glad to see how much you will be able to save and how it can help you lower your debts. For example, cut off any monthly magazine and cable subscriptions you have. These things, if you think about it, are not so important, and yet, take away a few hundred dollars a year.
4. Arrange a payment plan with your creditors.
Tell your creditors your situation and tell them that you're doing your best to pay off your debt. Tell that you need an easier payment schedule, so you can easily pay off your debts.
The Fair Debt Collection Practices Act serves to protect you, the debtor. This law forbids debt collectors from contacting you before 8 am, after 9 pm, and during work hours if the debt collector knows that your employer doesn't permit these calls. This law also keeps them from any form of harassment, lies and dishonorable practices towards you when collecting your debt. Lastly, they should honor your request if you send them a note telling them to stop harassing you.
5. Go for a credit counseling service.
If a self-help plan is not working for you, turn to a credit counseling service to help you plan a budget and reduce, and eventually eliminate your debt. There are non-profit credit counseling programs out there, but be careful, though, because some of them have hidden charges which do not help at all.
6. Make more money.
Turn to other sources of income if you want to pay more of your debt. For example, apply for a secondary job or open a business - anything that will increase your monthly income.
There are many more ways to eliminate debt. Of course you should wait until all your debt is paid off. Just keep going.
If you want more tips, visit my personal finance blog. It has lots of ways to teach you how to erase debt, deal with bankruptcy, and many more.
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