Debt Clear Direct

by nicolernorman

Get debt free: 7 Simple Steps To A Stress-Free Life

Can you imagine your life without mounting credit card bills, payday loans, medical bills and threatening calls from collection agencies? Well, living a debt free life isn’t impossible. All you need is the determination, time and patience to find the right way out of debt. Once you get rid of the burden, you can enjoy a stress-free life.

Paying your bills on time and getting debt free is a great way to get your finances back on track. Given below is a list of 7 steps on how to lead a debt free life.

Legally Reduce Your Bills

Step 1 – Admit that you are in debt problems

The first step towards a debt free life is to admit that you are in debt. Leaving bills unpaid and avoiding creditor calls isn’t the solution to your debt problems. In fact it makes the situation worse. However, the fact that you’re reading this article implies you have already accepted that you are in debt and you’re ready to take the next step.

Step 2 – Seek professional help to get debt free

Get professional help from a debt relief company. If you want to lower your rates and consolidate your bills into a single monthly payment, then debt consolidation program is the right option for you. If you want to reduce the outstanding balance and can’t see how to make your monthly payments, then you should enroll in a settlement program.

Step 3 – Free counseling to help you get debt free

The consolidation/settlement company will offer a no-obligation free counseling session. In this session, a consultant will analyze your financial situation and suggest the right debt solution for you. To make his task easier, you should prepare a list of your debts/bills. Next to each of your dues, put down the name of the creditor, the total amount you owe, the rate of interest and monthly payment. This will give the consultant a better picture of your financial standing.

Step 4 – The consultant prepares a monthly budget for you

Based on the total amount you owe and your monthly income, the consultant will help prepare a monthly budget for your expenses. This is to find out how much you are left with after paying your utility bills and other expenses. The amount left over will be used to pay off your debts.

Step 5 – The consultant negotiates with your creditors

In a consolidation program, the consultant negotiates with the creditors/collection agency in order to lower your rates and monthly payments. However, if you’d like to settle debts, the consultant won’t negotiate for lower rates. Rather, he’ll talk to your creditors about reducing your outstanding balance.

Step 6 – Start making payments

You need to make a single monthly payment to the consolidation company which distributes the amount amongst your creditors. This goes on for 2-6 years till you get debt free.

If you choose debt settlement, you’ll have to stop paying your creditors and make a monthly payment to the settlement company. The payments accumulate into lump sum cash in a trust account. The lump sum amount is then paid off to the creditors/collection agency.

Step 7 – Say a big ‘No’ to any new credit card/loan

While you consolidate or settle debts, make sure you don’t apply for any type of credit/loan. Otherwise, it will be difficult for you to get debt free.

Legally Reduce Your Bills

National best selling author and financial Dave Ramsey motivates millions to become debt free and financially free. More at daveramsey.com
Video Rating: 4 / 5

Related Posts:

• How To Become Debt Free In One Year? The Easiest Way Ever!
• How to Get Free From Debt Without the Shackles of Bankruptcy

by Travis S.

TIPS IN HOW TO BECOME DEBT FREE

STEP 1: STOP MAKING ANYMORE DEBT!!!

You cannot even begin to think of becoming Debt Free unless you stop making any further debt. The first step to get out of your Debt Trouble is to stop making any further Debt. Don’t be tempted to use your credit cards or enter into more loan agreements just to try and pay current debt. That is Debt Suicide.

STEP 2: MAKE A LIST OF WHAT YOU OWE CREDITORS

Gather all your latest statements and begin to make a list of all your Debt Obligations. Begin with the largest balance first. List the minimum monthly installments required, interest rate applicable as well as the outstanding balance. You might get the shock of your life when you see how many Credit agreements you really have, and the total Debt amount they all add up to.

STEP 3: REDUCE YOUR EXPENSES

Look at your budget responsibly and see which expenses can be reduced. For example:

-Reduce your DSTV package to a lesser one.

-Consider reducing your cell phone contract to a more affordable package. You most probably will be paying a penalty fee because of the reduced package you want to downscale too, but at the end you will save some money.

If you are using your cellphone a lot during office hours, it might be a better option for you to upgrade your cellphone. For example. You spent about 200 minutes on the phone every month on a 120 weekender package. The additional 80 minute calls made plus the calls during peak hours can send your cellphone bill sky-rocketing. Upgading to a Talk 240 where you get 240 anytime minutes free, might be the best solution for you.

-Shop around for cheaper household and car insurance quotes with the same covering you currently have.

STEP 4: PRIORITIZE YOUR REPAYMENTS

Add the additional money created extra in step 3 to the Debt with the smallest balance. Once the smallest Debt is paid off, use the money freed up in step 3 to pay off the next Debt on your list until this one is also paid off.

This way you will not spend the money available after a debt has been paid off, but use it to pay off other debt. You will be amazed how much interest you will save.

STEP 5: GET HELP

If any Creditors are in the process of taking legal action against you, or you are experiencing trouble in meeting all your monthly debt requirements, don’t stress.

For a free debt assessment contact 0861DEBTAID. A NCR Registered debt counsellor from Debt Aid debt Counselling can help you reduce your monthly debt repayments to one affordable amount, without making more debt.

Related Debt Free Articles

Related Posts:

• Lead A Debt Free Life With Debt Relief
• Start Living Debt Free, Where Do I Start?
• Just Which Route Do I Take to Become Debt Free Today?