Debt Reduction and Management Made Easy
A Credit Article Contributed by Brandie King
Debt Reduction Management Made Easy
This article is overflowing with debt reduction and management tips that are sure to get you on the road to recovering from your debt problems.
Debt Reduction Management Tip 1
Look for credit cards with interest rates lower than than the cards you currently have. You can then transfer the balances on your higher rate cards to ones with lower rates.
Debt Reduction Management Tip 2
Contact a company such as Consumer Credit Counseling Services (http://www.cccsintl.org/) that can help you deal with your creditors and negotiate better terms on your debts.
Debt Reduction Management Tip 3
Get copies of your credit reports from the three credit bureaus (Experian, Equifax, and Trans Union) and examine them thoroughly for errors and inaccurate information. All three of the reports will most likely be different because creditors don't usually report to all three bureaus. If you find errors, inaccurate information, or debts that are older than seven years (that are paid in full) contact each of the bureaus for their policies and instructions on disputing items on your credit report.
Debt Reduction Management Tip 4
Buy a software program that includes a feature you can use for reducing and/or managing your debt. Quicken Deluxe (http://www.quicken99.com/dlx.html) has a feature they call a Debt Reduction Planner that does exactly that. It also has a budget planning tool that you can use to help prevent yourself from getting into debt in the first place.
Debt Reduction Management Tip 5
Don't use your credit cards for frivolous purchases. Don't buy anything with one of your credit cards if you will not be able to pay the balance in full when the bills come. If you will not be able to pay the balance in full, always make sure to pay more than the minimum due each month.
Debt Reduction Management Tip 6
Cut back on your expenses as much as possible by eliminating any that are not absolutely necessary. These can include things such as the Caller ID/Voice mail/Call Waiting features on your phone (if they cost you extra), your cable or satellite TV service, any extras you pay for on your TV service, eating out, entertainment (such as going to the movies), anything that you can live without. Then make a pledge to use the money spent from cutting your expenses to pay back the debts you owe.
Don't use this saved money in place of what you normally pay on these debts; use the extra money IN ADDITION to what you normally pay.
Debt Reduction Management Tip 7
Figure out which one of your debts has the highest interest rate and pay as much as possible on that one, only paying the minimum on your other debts. As soon as the debt with the highest interest rate is paid in full, switch to the debt with the next highest rate. Keep going with this process until all of your debts are paid. The goal here is to "pay smart". What this means is that even after you have paid off your highest interest rate debt, you continue paying the same monthly amount on all of your debts combined no matter how many of them there are.
