Debt reduction is a primary priority for most Americans. With today’s economic recession and skyrocketing unemployment, many people are losing money in investments and their homes to foreclosure. Today, more than ever, people are realizing debt is their enemy and looking for options to clean their financial slate.
Although debt reduction can seem like a daunting task, there are numerous ways to reduce spending and pay off debts. However, in order to be successful at debt reduction, you must sit down and thoroughly review your finances. Once you can see where you stand, it becomes easier to determine which type of debt elimination plan will best help you reach your financial goals.
The most popular debt reduction plans include: debt consolidation, debt settlement, debt management, credit counseling, budgeting and bankruptcy. Many of these plans require the services of debt professionals. The majority of service providers charge a fee to reduce or settle debts.
Unless you are drowning in debt there is no reason to invest money into debt reduction plans. Implementing solid budgeting techniques can help you regain control of your finances without spending a dime.
There are numerous resources available to help people learn how to budget. The library is another source for obtaining information on creating a household budget and personal finance. Most libraries offer a variety of personal money management courses on DVD or VHS, which they lend out at no charge.
For those unable to master the art of budgeting, credit counseling is a relatively inexpensive way to reduce debt. Although most credit counselors charge a fee, individuals who cannot afford this service can obtain help through non-profit agencies. The U.S. Trustee Program offered through the Department of Justice provides a list of approved nationwide credit counseling agencies, as well as debt education providers.
Individuals considering bankruptcy would benefit from using the above referenced credit counseling services. When debtors petition the court for bankruptcy protection they are required to obtain credit counseling through one of the U.S. Trustee agencies.
There are an abundance of organizations offering debt reduction programs. The problem is most of these companies charge exorbitant fees to negotiate debt. If you decide to use debt reduction companies, it is crucial to conduct research to ensure you are working with a reputable organization. One of the best places to verify credentials is via the Better Business Bureau website at www.bbb.org.
Debt reduction requires patience and persistence. Realize it took considerable time to create a mountain of debt and it will take time to conquer it. Invest time in becoming educated about the various debt reduction plans. Decide which is best suited for your needs. Develop a plan and put it in action. Enjoy the rewards of your efforts and watch your debts melt away.