There is plenty to be concerned about when one is in debt. Income does not seem to stretch as far as it should and expenses seem to keep mounting up. And when creditors keep calling and maybe even threatening legal action, things can seem unmanageable. In such a scenario, debt relief becomes extremely important. With proper measures of debt control and leading a life of greater discipline and perhaps even sacrifice, one can enjoy a life that is free of debt or at least debt that is under control. So what is debt relief all about? Is there any way that you can do it by yourself? Or do you need an external company or agency to help you with the same?
Debt relief is all about getting rid of the Damocles Sword of debt that can make life even more complicated. It is indeed very possible for you to treat it as a DIY project. There are also plenty of companies that can help you with the same. The decision to outsource your debt relief program or do it by yourself can be taken with the answer to a very simple question – can you show a sense of determination and discipline to do it by yourself? If the answer is an unequivocal yes then you can certainly embark on a debt reduction or elimination program completely by yourself.
Start with fostering a lifestyle of careful expenditure and maximum savings. It is easy to spend plenty with a credit card but be wise to the fact that even credit cards need to be repaid! Therefore, it is important to keep such spending in check. Ideally, buy only what your bank account or wallet can afford to repay when the bill for the credit card usage arrives at your door. Savings is another way of ensuring that you have something for a rainy day. Whether it is in bonds, bank accounts or other means of savings – opt for them all.
Take a good, hard look at your finances. This includes all income streams and all expense streams and then you will get a grasp of how best you can manage to pay off old debts. Make a list of how much you owe to all creditors and what is the interest rate that is applicable on each of these areas of debt. Thereafter, you can choose to pay off either the lowest amount owed right away or pay the amount that is attracting the highest rate of interest.
This is one area of life which has to follow the adage of “slow and steady wins the race”. A debt relief project needs constant infusions of money and a very methodical and slow approach. You cannot afford to take decisions on the spur of the moment. There also has to be a sense of commitment to stay the course and resist all temptation to buy products or things that you can do without. Falling prey to this temptation will immediately mean that you have that much lesser to repay the debt.