Debt Free for Life

The first step in the debt free direction is to admit you have a problem. Once you can admit that yes, you do have debt, and admit to the full extent of the debt - face it and then determine to get out of it. All the more reason for you to admit to this if you are receiving creditor calls and not paying all your bills.

Now that you've admitted you have a debt problem you can and should get professional help to become debt free for life. These days there are a number of organizations out there offering to help consolidate, settle and help you to pay off the mountain of debt. The type of help you seek depends on what you want to do. Debt or consolidated credit services help you to roll all your debt into one account and allows you to make one payment a month towards the balances. Another route is debt settlement companies, they seek to get your debt reduced while allowing you to save up for complete payoffs.

Be cautious with whichever route you go. Both will mar your credit report. But chances are if you are needing their help in the first place then your credit report has already suffered. Make sure that you research the company you choose - find out if there are any complaints with the Better Business Bureau, check for ratings and recommendations online.

Most companies will give free debt services by offering the initial consultation free of charge. This visit normally consists of debt free financial advice and the start of a monthly budget plan. Might be worth it to take advantage of this and see what they have to offer, even if you don't hire them. Have all your creditors listed -with the full amounts owed, minimum payment and interest rate when you meet for the consultation.

At most free credit card debt counseling consultation meetings you will have a monthly budget prepared for you based on your income and all your bills. It really helps to see it all written out. You will know exactly what you have to work with.

Depending on which type of company you choose your agent will either contact your creditors and see about lowering the interest rate and the monthly minimum due or they will negotiate to have the full amount lowered.

Next you start to make payments after signing on with either credit card consolidation or debt settlement. Consolidation payments will go towards all your bills each month. The amount of time it takes to pay the debt off depends on how much money you can pay each month.

With debt settlement you will be making payments to the company, they will save the sums until they can pay off each debt in full. This will go on your credit report though as not paying until the debt is paid off.

Once you put a debt free for life plan into action the best thing you can do is to avoid having any other credit cards and going into debt again. Make it your policy to pay with cash, or to use a debit card that is associated with your checking account.