Undoubtedly, you have come across Web sites and advertisements enticing you to sign up for a program to become debt free fast or get rich quick. These programs offer you easy solutions, for example:
All of those are great solutions. If you can afford to make more than your minimum payments, then accelerate your payments, don’t run up new debt, and employ all those solutions. Stop here, and don’t read on. However, if you have real debt problems, bad credit, no assets to sell or use to pay off your debts, then you need to put in more effort to solve them. If you are having trouble making minimum payments, making or keeping your budget, or receiving collection calls, then read on.
How to become debt free is a good question and the more you are struggling, the more effort you will need to put in. We all know how easy it is to make a New Year resolution, or resolve to lose weight or quit smoking, but keeping on track is more difficult.
Here are three important steps on how to become debt free:
While taking a deep breath won’t solve your debt problems, it will allow you to compose yourself. In order to become debt free you need to re-organize your habits. No matter which solution you choose, you need to start by organizing your financial situation. You need to answer the basic questions of how much you owe, pay and can afford.
No matter which option you choose, a budget and thorough understanding of your financial situation is necessary to move toward becoming debt free.
Preparing your budget, or at least putting the information together was a big step, but don’t stop there. Be proactive in finding debt relief solutions. How to get debt free depends on the details of your financial situation. If you are having serious debt problems, these are the main solutions:
How to become debt free through those programs is simple. You enter a program, with professional guidance, which then structures your debts into different types of payment schedules.
All bankruptcies must be court approved and involve many legal technicalities. I recommend that you speak with an experienced bankruptcy lawyer before proceeding.
Many people begin to make a budget, and then give it up. Many customers, as many as 75%, drop out of credit counseling, mostly due to committing to a payment that they can't make. The realization of being in debt and the discomfort it causes is a strong motivating factor to look for a solution.
It is up to you to take the first steps of organizing your finances. Fortunately, there are professional who can help you work through the complicated issues involved in becoming debt free. Work with the professionals, and stick to your plan.