Free and Simple Debt Management Program
A Credit Article Contributed by Brandie King
Free and Simple Debt Management Program
This article will show you a free and simple program you can use for debt management. One thing that you need to understand, though, is that free and simple does not necessarily mean easy. You have to be willing to work at it to get out of debt, but the end result is worth every bit of the hard work. The other thing you need to understand is that using this program will not make your debt disappear overnight. It took time to incur the debt and it will take time to get rid of it.
Free Debt Management Program: Stop Making More Debt
The first thing that you have to do is stop making more debt. This may sound pretty obvious but most people actually do not think of it. As hard as it may be, stop using those credit cards. Continuing to use them just racks up more debt that you are going to have to pay off. Stop buying things on impulse, don't buy anything you don't absolutely need, pay your bills on time, you get the point.
Free Debt Management Program: Figure out Where Your Money is Going, Reduce and Eliminate
If you don't know exactly where your money is going, how will you ever find the money you need to get out of debt? Make a list of the money you spend each month, including regular monthly bills like mortgage and car payments as well as those little extras. Little extras include things like the newspaper, doughnut, and coffee you buy each morning, the lunch and snacks you buy at work every day, eating out, going to the movie theater, renting movies and buying pizza every Friday, etc.
Free Debt Management Program: Pay off Debt
To get out of debt you have to pay it off, no two ways about it. Start by making a list of all of your credit cards, including their interest rates and minimum monthly payments. Pay as much as you possibly can on the highest rate card each month and the minimum monthly payments on all other cards. Once the highest rate card is paid off move on to the card with the next highest rate. Pay as much as you can on it each month and add what you were paying on the first card.
Continue on with this pattern until all of your credit cards are paid off. This will be much easier to do if you follow the first tip and have quit using the cards.
Free Debt Management Program: Repair Your Credit Report
Now it is time to see if your credit report needs some fixing. Since creditors aren't required to report to all three of the major bureaus, you have three different credit reports. Order your credit report from all three of the major credit bureaus. Once you get the reports, spend some time examining them for errors and inaccuracies. As you find errors and inaccuracies write them down, keeping a separate list for each credit report.
Then you need to write a dispute letter to each of the credit bureaus. Visit Credit Info Center at http://www.creditinfocenter.com/forms/index.shtml for a sample letter that also includes what you can say to get old accounts removed.
