If you discovered a genie in a bottle and got three whishes, what would they be? A new car? A bigger house? Maybe even more wishes. Most Americans wouldn't even think of it, but the one wish that could benefit more that 80 percent of all Americans would be to eliminate debt, all of it, gone.
Don't be afraid. Finding a genie in a bottle is not the only way to eliminate debt. With debt in the Unites States at an all time high, debt management companies are springing up all over the place. For no matter what your financial situation, there is a program, or technique that can assist in lifting you back onto your feet. There is no need to be ashamed of your financial situation. No matter what your level of debt, there is always a way out, if you are willing to accept that you need assistance and put the time and effort in to make this goal a reality.
The first step you need to take to eliminate debt is decide that you want to change. This is not going to be an easy task, and may take several years to accomplish. The most important part is that you realize that you cannot eliminate debt over night, unless of course you win the lottery. Most processes take upwards of 5 years, depending on your level of debt.
Methods To Eliminate Debt
The first option you have to eliminate debt involves control. Creating a budget, either on your own or with a professional credit counselor, can assist you in ways that do not require much drastic change. But investigating your income, you can start to recognize unneeded, and unwanted spending occurs, and find ways to eliminate this income loss. Budgeting can begin to eliminate debt without causing major changes in your lifestyle, other than realigning your financial priorities to maximize your spending power.
If you are a little beyond budgeting helping you out of debt, you could start to look into other options to eliminate debt such as consolidation. If you have numerous credit cards with balances, you are already in trouble. A consolidation loan allows you to combine all of these balances through the process of getting a loan to pay them off. In turn, you will receive a lower interest rate, saving you money each month, and allowing you to pay off the debt faster, getting you back on track quicker than you would have with multiple credit card accounts.
For some, debt has already taken control of their lives. Having large, unmanageable debts can sometimes lead to missed payments, skipped payments, and overdue accounts. If this is the problem, consolidation may not for you, but there are other options to eliminate debt. Debt settlement is the process of negotiating with lenders to reduce the total value of debt. This is made possible due to the fact that bills are so far behind. By not paying for months on end, creditors are willing to accept payment for a lower value than the total balance, than receive a bankruptcy claim and not get paid at all. This option is damaging to credit due to the need to not pay bills for several months, but is a valid alternative to bankruptcy.
There is only so much you can do to eliminate debt. Learning as much as you can, asking as many questions as possible, and making sure you follow through with the plan you decide upon is the best you can do. The more you educate yourself in the problems and issues surrounding debt, the less chance there is for relapse, and falling back into uncontrolled credit spending, which will bring you back to the edge of credit destruction.