How to Reduce your Debt in 5 Easy Steps

Written by Chileshe Mwape


Continued from page 1

However, you could replace expensive debts with a cheaper personal loan (unsecured loan). Before taking on new debts, you might want to check out your credit history.

4. CREDIT COUNSELING

Some people are not disciplined enough to create a workable budget and stick to it. If you canít work out a repayment plan with your creditors and you canít keep track of mounting bills, consider contacting a credit counselling organization or a financial advisor. Inrepparttar UK you can use free debt counselling services such asrepparttar 148134 Consumer Credit Counselling,repparttar 148135 National Debtline andrepparttar 148136 Citizens Advice Bureau. Similar services are available inrepparttar 148137 US.

5. CONTACTING YOUR CREDITORS

A creditor is a company or person to whom you owe money. Many people struggling financially ignore debts and fear contacting their creditors. This reaction will damage your credit record. Creditors or lenders may take action against you in an effort to get payment. If you're finding it hard to get your bills paid, berepparttar 148138 one to contact creditors. They will be more willing to work with you. Work out arrangements that satisfy you both. Explain to each lender that you aim to repay each debt in full over time, but that they must accept reduced repayments for now. Decide how much you can pay them each month and set up a debt repayment plan. Conclusion If youíre serious about reducing your debt you should stop spending on your credit cards and stop taking out new loans. To increase your income, consider finding a second job or a lodger. Claim every state benefit that you qualify for and work on cutting down your expenses. Sell stuff that you donít need on eBay or at Car Boot fairs. Put enough money aside for emergencies, but userepparttar 148139 bulk of your savings to pay off debt. Debts usually cost you far more in interest than you gain on your savings. Also, if you have a fairly good credit record, you should transfer your debts to cheaper lenders. Finally, shop around for better deals for services and products that you use.

Disclaimer: This article does not constitute financial advice. If you require such advice, you should seek appropriate professional guidance.

Copyright © 2005. Chileshe Mwape writes for Debt Consolidation Loans UK: http://www.best-debt-consolidation-loan.co.uk/. Visit our site to consolidate debts and apply for a loan online. This article may be reprinted as long as all the above links are active and clickable.


Debt Management - How A Debt Consolidator Can Reduce Your Debt

Written by Carrie Reeder


Continued from page 1

With this method of debt relief,repparttar debtor will no longer have to answer embarrassing phone calls from his creditors. The debtor will not receive any bills or payrepparttar 148133 creditors directly. The debt consolidation program will directly take control overrepparttar 148134 creditors. The debtor will just need to payrepparttar 148135 debt consolidation company a single amount every month according torepparttar 148136 budget which was agreed upon withrepparttar 148137 debtors. So there is no need for any interaction withrepparttar 148138 creditors.

Most ofrepparttar 148139 time these systems are free torepparttar 148140 debtor becauserepparttar 148141 fees are paid byrepparttar 148142 creditors, since they would rather get something in return than lose allrepparttar 148143 money thatrepparttar 148144 debtor owes them. Also, programs like this work for those with good or bad credit. It is a great solution for debt reduction to use a debt services company or consolidator that uses this method.

To see a list of recommended debt consolidation companies online, visit this page: www.abcloanguide.com/debtconsolidation.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.


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