A Guide to Managing Debt

Understanding Debt

When controlled properly, debt is a valuable tool. Loans allow us to buy houses, cars, and educations. Lines of credit make spending more convenient. And payment plans save us from having to dealing with major expenses, such as out-of-pocket medical costs.

Digging a Hole

While debt is often necessary and useful, it can easily become a burden and we can quickly find ourselves in a hole that seems impossible to escape. In many respects, loan structures and minimum credit card balances are designed to keep us in that hole, because as long as we’re paying interest, banks and credit card companies make billions of dollars. However, as soon as the hole gets deeper, our lives begin to fall apart and once you’re in too deep, it doesn’t seem like there is any way out. Because debt can feel like a bottomless pit, many fail to take action, remaining in the dark about their options. Sometimes this is true for years. People attempt to survive under increasingly impossible stress, and unfortunately the breaking point comes at the expense of relationships and personal well being.

There’s always hope. The sooner you take action, the sooner you can end the vicious cycle.

Getting Relief

No matter what type of debt you’re in, there is always a way to get relief and get your life back on track. One of the first steps is to recognize the problem and accept help. Whether you’re dealing with consumer debt, multiple bills you can’t pay, or collection notices, there are solutions.

Step One

The first thing to do after you recognize and accept that you need help is to meet with a non-profit consumer credit counseling service. Debt consultants can offer you free advice, enabling you to make changes on your own, or they can advise you about the many courses of action you might take to manage or eliminate debt.

Eliminating Stress and Taking Action on Your Own

Non-profit debt consultants will work with you to analyze your situation. They’ll advise you on debt-relief steps that you can take and they’ll help you cope with stress and take simple actions that may provide immediate relief. They’ll explain the inner workings of debt collection, junk debts, debt validation, and your legal rights. They’ll also give perspective on the debt relief industry, allowing you to take an objective look at the various options that might work best for your situation.

Debt Management and Debt Elimination

When you have too many payments you can’t meet, you might qualify for a debt management or debt elimination program. Consumer credit counselors can provide free educational materials about various strategies and programs for which you might qualify. This could be a combination of budgeting and debt consolidation, or it could entail a debt settlement program. It all depends on the nature of your debt and your unique financial situation.

Debt Consolidation, Debt Negotiation, Debt Settlement

When you meet with a credit counselor or debt consultant, you’ll learn about a variety of debt relief options. Among them are debt consolidation, debt negotiation, and debt settlement. Each has its pros and cons, and you’ll learn about the benefits and hazards of each potential solution. You’ll be given warnings about various scams to avoid, but also told about amazing success stories. You’ll learn how various programs work, and how they might work for you.

Below is a list of topics you can explore on this website, and which you might discuss with a credit counselor:

Take Action to Turn Your Life Around

Dealing with unmanageable debt can make it impossible to live a happy, healthy, and productive life. When you’re in debt, bad financial patterns tend to snowball and everything gets put on hold. However, debt relief provides many solutions. All you need to do is take action and accept help. Speak with a free credit counselor or debt consultant today and make the move to get your life back on track.