Sometimes it feels like you're in such a debt-hole that there's no way to climb back out. Some people just keep avoiding the problem, like I did, and then some people tackle the problem head on (the better thing to do). The thing is, if you keep letting more and more time go by, you will continue to get late fees and finance charges that can more than double the amount you already owe. Follow the next 3 steps and you have begun to diminish debt from your life. I did and afterwards I felt like a huge weight had been lifted off my shoulders.
1. Call the company.
Yes call. Call and speak to someone (don't forget to get their name) and explain the situation. Say that you want to pay off your debt and would like to see if they can set up a payment plan for you. Explain that you only have x amount of dollars to give them at a time and in most circumstances they'll be happy to work with you. Remember, they want their money and are most times willing to take a little bit of a loss to get at least something in return. When I called my first credit company and told them I could pay 100 dollars now and then 100 dollars in 2 weeks, the creditor told me that all I had to pay was 115 dollars to bring my account up to balance. What a deal! I owed way more than that in fees, but what I didn't realize was that they can waive over charges and finance charges to bring the payment down. So ask them what they can do for you, if they're willing to decrease the amount great, if not, you're not any worse off than you were before.
2. Make Payments.
Once you speak to the company, you have to continue to make the scheduled payments on time every pay period. You're getting a break, so don't make the company think that you're not reliable. If you have extra money, put it towards you bills. Even if it's 5 dollars it's still 5 dollars less that you owe.
3. Put other things on hold.
Not your bills! If getting rid of straggling debt means not going out to the bar or going to the movies, it's worth it! I'm not saying never do anything that's fun, but before you go out socially or buy something ask yourself which is more important, going to a movie, club or bar that you will have nothing to show for afterwards or putting the money you would have spent there towards your debt. It didn't take me long to realize that it felt much better to pay something off than to feel guilty about going out when I had other responsibilities to take care of first.
Follow these three things and I'm sure you'll start to get rid of your debt and start building a way to less stressful life.
Next time...Which bill to pay first?
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