Being in debt up to your eyeballs you may be wondering what are my debt relief options? You might also be thinking that that their has to be an option that doesn’t require bankruptcy or credit counseling as well.
In this article I going to cover the two do it yourself option to help you get out of debt once and for all.
DIY Debt Plan
First off, you may want to look into setting up your own debt plan. To do this all you need to do is gather up all your debts and setup a spread sheet ranking your debts from the highest debt to the lowest debts balance.
Then start paying off you lowest debt first and add an extra $50 to $100 to that debt only and pay the minimum on the rest of your debts. Then once the first debt is paid in full continue onto the next debt except this time roll up the $100 plus the payment you were paying on the last debt.
Doing this will speed you up to getting out of debt. However their are two rules you must follow in order to make this plan run smoothly. First, always pay your mortgage last and second when all your debts are paid off save enough money back for a 6 month emergency fund. This will help you from falling back into debt again.
DIY Debt Consolidation
The second option is to do your own do it yourself debt settlement plan. This process is almost the same as the last. To start grab all of your debts and line them up from highest balance to the lowest.
Then, call your creditor with highest balance first. Explain to them you are having a tough time paying off your debts and would like to negotiate a deal. A lot of times creditors may not be willing to cut the balance but may be able to cut the interest on your debt.
If times are tough anything is worth the shot. From their move on to the next debt and so on. A couple of things you should know as well is that this options works better when you are in a financial hardship, if you only have a couple hundred dollars of debt on a credit card your creditors will probably be less likely to do anything for you.