Just say no to credit! That is the best advice for a debt free life, but if this advice comes too late and you are already over your head in debt, here are some debt relief solutions you can make use of.
Pay your debt
I know it may sound a bit obvious but you would be amazed how many people are over their head in debt but make no attempt to pay off their debts. You need to come up with a workable plan to pay your creditors in the shortest time possible.
In case your debt is not so severea simple cut back in your spending will do the trick. In life there are a number of things that we spend on but may simply be luxuries and cutting them out will provide money to pay off debt. Cable TV, drinks at the bar, eating out, gym membership and even driving. These are examples of luxuries you may cut spending on and end up with money to pay off your debt. It does not mean you totally have to give up these things but you can substitute them for example it is cheaper to buy a six pack from the supermarket than a beer at the bar, instead of buying lunch you could pack lunch for work and carpooling will save you the gas bill.
Settle your debt
Debt settlement is one of the payment options you have to achieve debt relief. With this you should be out of debt in 24 months or less depending on how well you negotiate. It involves reaching an agreement that may see you paying as little as 50% of what you owe your creditors but it will work better for moderate debt. It is best advised to negotiate directly with your creditors. You however should be advised that settling your debt will affect your credit score so unless you are deeply in debt with no other option do not go in for it.
Apply for Bankruptcy
This is going to involve court proceedings and may damage your reputation greatly but it will leave you completely free of debt in most cases. According to chapter 7 of the bankruptcy law if you can prove that what you owe your creditors far exceeds your income then you can file for bankruptcy and all your debts will be canceled and you will be free from any action intended to recover the money you owe. You however need to be able to pay the attorney fees because you will need legal representation to do this.
Never lose motivation
It is common for people to just give up on trying to achieve debt relief and they will stop trying. It is therefore important to find something that will motivate you to keep going. Many people who have been through this have noted that watching the figure going down is a motivation. It will help a lot to make a list for your debts and mark them off as you pay them down. With every payment you make you get closer to your goal and it gives you the belief that you will attain it. Talk to financial advisers for debt relief help if you can and they can keep you motivated.
It is not going to be easy but it certainly is possible so just saddle up and begin your ride to debt relief.
Phil Farell is a finance writer who loves to give useful tips to overcome bad debts. He also shares his insights on investing, financial management and lease financing. His blogs currently feature several investment articles for those who want to grow their finances.