Oftentimes we find ourselves in debt unexpectedly. And for whatever reasons or another, we just need some help getting out of debt. It is definitely possible to get out of debt yourself and one of the ways that you can do this is by creating a get out of debt budget. Regardless of how you got yourself into debt, it is entirely possible to wipe out debt and keep yourself debt free. Today, we’re going to talk about how to negotiate out of debt. This strategy will involve a lot of talking and charm on your part, but it is possible to get some debt relief with this method.
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The first step for negotiating out of debt, and for any sort of debt relief that you start yourself, is to figure out where you stand financially. You’ll want to look closely at all aspects of your financial life to see where your money is coming in and where your money is going out.
When listing your debts, be sure to include the amount of principal, interest rates and any penalties that have been added on as this will help you with the next step in your debt reduction strategy.
Negotiating your debt may take some time, but it can help a lot.
Call all of your creditors individually, and see if they can lower the amount you owe. Credit card companies will often forgive a late payment, or lower your interest rate, for nothing more than a simple request. This will work better if you have had a good payment history, even if you have missed a few recent payments.
Not all of the companies you owe money to will agree, but every one that does will put a dent in what you owe.
Once you have negotiated a lower debt, your next step is to set up a payment plan.
Almost all creditors are willing to do this, and most will be able to set up a plan that fits into your budget. If you are facing financial problems, be sure to let them know.
A lot of companies have hardship programs they can offer you. These programs can drastically lower your interest rate, forgive penalties, or even freeze your account. You won’t be able to use the account during this time, and the hardship program may only last 6 to 12 months, but it can often give you the breathing room you need to get back on your feet.
Consolidating your debt is a solid debt reduction strategy, but it’s not for everybody. You have to be disciplined enough to not go further into debt because of it. What you do is combine all of your debts into one big loan, but at a much lower interest rate. You can read about the pros and cons of get out of debt loans as well before you make a decision.
It is entirely possible to negotiate out of debt and I would highly recommend trying to get our of debt yourself. Follow Just Another Mom on Twitter for more financial tips.