Credit Card Debt Reduction
If you are in debt and are struggling to make ends meet then take action today. Many peoples debt gets out of control simply because they leave it until the last minute to try and correct the problem. The first thing you should do is make a list of everyone one you owe money to along with their respective amounts. This will allow you to prioritise and allow you to achieve credit card debt reduction quickly. You should always focus on the largest debt and or the one with the highest interest rate. Debts with high interest rates are likely to be more problematic and less manageable so always target these to begin with.
Debt Consolidation
Borrowing from Peter to pay Paul does not work as we all know but using a reliable debt consolidation program is somewhat different. This enables you to pay off all of your original debts and allows you to pay everything together in one monthly payment. This allows you to manage your debts more efficiently than before and has many advantages including an overall lower interest rate. If you want to go down this route please read all of the wording on any contract; including the small print. The small print is very important and you must read it before committing to anything.
Debt Negotiation
If your debts are becoming problematic then you could always try negotiation with your creditors. You will be surprised at their reaction and some of them may even agree to lower the interest rates for a certain period of time. If they are not willing to lower interest rates then there is the option of borrowing what you need to pay from someone else providing this new loan has a lower rate of interest. Although this is not a long term solution, this would give you some breathing space. This is particularly a helpful method for people who owe lots on credit cards and desperately need to reduce what they owe one their cards.
Taking Advantage of Government Legislation
Some countries, especially the UK and certain member states in the EU, have legislation in place to protect people from debt problems. It varies from country but usually it allows you to write off up to 80% of the debt depending of your circumstances. In the UK, for example, there is something called and IVA or Individual Voluntary Arrangement. Many lenders have provisions for loans that are never paid and sometimes are willing to accept to have part of the debt written off in return for the rest to be repaid over an agreed period. The creditor must agree to the terms of the IVA before it becomes a legally binding issue. The amount that is then written off varies and depends on your individual circumstances but this is best to be discussed with a debt advisor in your country of residence. He or she will be able to give you a much clearer picture about how things stand. Please remember that being in debt is not the end of the world and you always have options.
Debt Consolidation
Borrowing from Peter to pay Paul does not work as we all know but using a reliable debt consolidation program is somewhat different. This enables you to pay off all of your original debts and allows you to pay everything together in one monthly payment. This allows you to manage your debts more efficiently than before and has many advantages including an overall lower interest rate. If you want to go down this route please read all of the wording on any contract; including the small print. The small print is very important and you must read it before committing to anything.
Debt Negotiation
If your debts are becoming problematic then you could always try negotiation with your creditors. You will be surprised at their reaction and some of them may even agree to lower the interest rates for a certain period of time. If they are not willing to lower interest rates then there is the option of borrowing what you need to pay from someone else providing this new loan has a lower rate of interest. Although this is not a long term solution, this would give you some breathing space. This is particularly a helpful method for people who owe lots on credit cards and desperately need to reduce what they owe one their cards.
Taking Advantage of Government Legislation
Some countries, especially the UK and certain member states in the EU, have legislation in place to protect people from debt problems. It varies from country but usually it allows you to write off up to 80% of the debt depending of your circumstances. In the UK, for example, there is something called and IVA or Individual Voluntary Arrangement. Many lenders have provisions for loans that are never paid and sometimes are willing to accept to have part of the debt written off in return for the rest to be repaid over an agreed period. The creditor must agree to the terms of the IVA before it becomes a legally binding issue. The amount that is then written off varies and depends on your individual circumstances but this is best to be discussed with a debt advisor in your country of residence. He or she will be able to give you a much clearer picture about how things stand. Please remember that being in debt is not the end of the world and you always have options.
Source...