Solving Debt Problems – a guide for Beginners
If you are in debt and not sure what to do then setting out some tasks to get you moving on solving your debt problems is the best approach. There is a lot of education material available about what debt is and how debt consolidation works, but in the beginning what you really need is a checklist that will let you stand back objectively and view the bigger picture.
Here are 4 steps that you can take to get you ready to start solving debt problems in your life and, most importantly, prevent them from happening again.
Step #1 – List your debt
Get out every bill that you owe on, and list every type of regular expense you have; from petrol to rent to food. Don’t forget to include all the little miscellaneous items that you regularly spend your money on, like that cup of coffee on your way to work, lunch with your colleagues and purchase of magazines or newspapers.
Organize your debt so you have a complete picture of who is owed what. You will also want to make a note of who is charging what rates in interest and penalties. This will be essential information for your debt specialist to have when trying to create any debt settlement. While you can leave that task for them to do, things will happen faster if you do it yourself ahead of time.
Step #2 – List your income and assets
Next make a list of all of your income sources and assets. Include in your assets any bank accounts or holdings as well as items. It is a good idea to go through and identify which of your belongings are really essential to you. Often we find ourselves with a lot of things in our life that we don’t really use or need. You may benefit from having a list of things you can sell to gain some cash to alleviate your financial burden. Don’t think you can sell enough to pay off the debt; you are simply looking for a little more cash on hand to make your life easier.
Step #3 – List your goals
Make a list of your goals in life. What do you want to do besides stop the debt collectors from calling? An important part of solving debt problems is coming up with a plan to guide you into the future. If you know what you really want out of life, it will be easier to make decisions about expenses and luxuries that may not fit the life you want to lead. With your goals in hand you will also be able to make better decisions about the debt consolidation or other debt solutions offered because you will see those offers in a larger context.
Step #4 – Get help to make arrangements
Take your lists and contact a debt specialist. If you have been in debt for some time you are probably far too stressed to take on the burden of dealing with debt collectors or negotiating a settlement by yourself.
These specialists have made a career out of solving debt problems and know the ins and outs out of what will get you to your goals sooner, rather than later. Dealing with debt collectors is hard and it takes someone who is accustomed to the industry to know the rules and regulations and prevent things from getting out of hand.
There are several debt solutions from which to choose and the one that suits you best will depend on your circumstances. It may be that debt consolidation is the best course of action for you, but beware of the risks of debt consolidation.
Settle Debt is a company that has helped thousands of Australians work through their debt problems. Their experienced debt specialists can help you too. Don’t delay. The sooner you deal with your debt, the sooner you will be on your way to financial freedom.