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Tips To Help You Take Control Of Your Debt

Having a large amount of debt hanging over you can cause stress and anxiety pretty much every day. It's constantly lingering over you, and you might think about the problem every time you have to buy something and open your wallet. But you don't have to live like this. If you want to take control of your debt problem and get your life back, you need to put a plan together. Here's how you can regain control of your situation and start down the road toward a better financial future.

Write It All Down

The first thing you need to do is pull a copy of your credit report, one from each agency. You then need to go line by line and figure out exactly how much money you owe to each creditor. Make a list with the highest amounts or highest interest rates at the top. While you are doing this, also be sure to double-check and make sure there are no errors or mistakes on the report. 

After you have all of your debt listed, it's time to look at your monthly income and expenses. Write down all sources of income that you receive each month and be honest when it's time to note your expenses. Circle opportunities on the expense report where you could move some money away from less important things and toward paying off your debt.

Call Each Creditor And See If They Will Work With You

Most creditors want to get people onto a payment plan because it ensures that they will at least get something every month. If it's been a while since you've paid certain debts and you have robocalls blowing up your phone, the first thing you should do is contact your creditors and explain your situation. They may be willing to stop the phone calls if you agree to make even a small payment per month that is automatically withdrawn from your bank account. Alternatively, you might be able to ask about settlement options. If you can get a loan from another source or borrow from a family member, you might be able to have your debt written off in full while only paying a percentage of it.

Consider Debt Consolidation

If you are having trouble tackling the problem yourself, you might need professional help. A debt consolidation consultant can work with you to come up with a plan. It might be possible to pay off all of your loans with the help of a debt consolidation loan. Then, you'll only owe one bill every month while your other debts are paid off and your credit score slowly improves. Contact a debt consolidation consultant today for more information