Millions of Americans are living in debt, with seemingly no way out. Most actually make their situations worse by not focusing on their debts, which delves them deeper and deeper into financial crisis. If you’re looking for a way to come out of your life of debt, then you need to put together an action plan and stick to it. You can either opt to obtain professional help or do it all yourself. Both routes will require dedication and commitment.
Calculate All of Your Debt
The first step is to determine how much you have in debt overall. This will help you to determine how much you can set aside each month to put towards your debts. You can find this out by requesting your credit report from all three bureaus and adding up the accounts you have open.
Contact Creditors to Make Deals
A lot of the time, you can contact creditors and set up either a payment plan or a lump sum payment that’s at a lower amount than what’s owed. Both options can be beneficial depending on the total amount. You can hire a debt consolidation company to do all the calling and setting up deals for you, but this service isn’t free.
Continue Paying On Current Debts
Whatever you do, don’t neglect the credit cards and bills you have now. Continue paying those on time, so no new accounts are opened on your credit report. Once you begin paying on your old accounts, your credit rating will begin to slowly rise.
Dispute Incorrect Items
If you notice open accounts that don’t belong to you or that have an incorrect amount, dispute it with the credit agency. If the creditor doesn’t prove that it is accurate, then the charge may be removed from your credit history, thus raising your credit rating.
Once you have paid down a significant portion of your debt, you can begin enjoying life again. You can even purchase yourself a box of Cubans from JR Cigar to celebrate your financial progress. After paying off all your debt, you get approved for a mortgage or auto loan with great APR rates.