We all know that debt is bad. Whether is past due loans, payday advances that are out of control, or even just owing a friend, the truth is having unmanaged debt can put quite a strain on anybody and you should make it a top priority to get out of debt.
While there are a ton of ways to approach getting out of debt, this article wants to offer 3 simple, but powerful tactics on how to get out of debt and take control of your financial situation again.
Ready? Ok. Here we go!
Step 1 – Get a Plan
I know this might seem obvious, but have you done it? When I say get a plan I mean that you need a solid get out of debt plan . This plan needs to be written down where it can be seen by yourself (and a spouse if necessary).
Failure to do this can lead to a mountain of trouble. Plans are like roadmaps. They help us to navigate to a certain destination. If you don’t decide to get a plan together for getting out of debt then how will you know you are making progress? Don’t put it off any longer. It’s true what they say…
Failing to plan is planning to fail. Even when it comes to debt.
Step 2 – Try to work out a settlement with your creditors
If there’s one thing I always do it’s try to work out a settlement amount with any past due debts I have had. What most people don’t know is when you have a credit card that gets closed, most times that debt is bought by someone else.
Well that debt is then sold to that creditor for pennies on the dollar, but guess what? You can play hardball and offer to give them way less for the debt than you originally owe. Now this might seem a bit crossing the line, but I tell them that I only want to pay a certain amount.
If they fail to agree then I don’t budge. If they say they’ll report it to the credit bureau I just respond by telling them I’ll pay to have it removed until they agree with my terms. Sometimes having a large sum of cash can help in the negotiation.
Step 3 – Pay more than the minimum balance
If you are the type of person that pays the minimum balance every month on any existing credit cards then the credit card companies are going to love you. Why? Because this is how they make their money.
If you only knew how much paying the minimum balance was really costing you then you might have a heart attack. (just kidding)
