GRAB DEBT PROBLEMS BY HORNS!

You get home and the phone is ringing. You walk over and answer the call. As you greet the caller, you quickly realize that the person on the other end of the phone is your credit card company, asking when you are going to make last month's payment. Your mind is running ninety miles a minute and your heart is beating so fast you can hear it in your ear-drums. You feel like screaming at the caller and saying, "I can't take it..I can't pay..I have no more money.." You finally realize as the caller is demanding a payment date and amount, that you have a debt problem. The question then becomes “how do I solve my credit problem?”

One of the first steps in solving a debt problem is simply realizing that your debt is a problem. Often times, people believe that they have a complete grasp on their debt. When in reality, their debt has a grasp on them. After you admit that you have a credit problem, then you can take the needed steps to begin fixing the problem.

It is often easy to ignore debt. However, by ignoring it, you are quickly making it a very serious problem. It is easiest to deal with debt head on, in the early stages. The longer you ignore your debt, the harder it is to fix the situation. Therefore, after you realize you have a debt problem you will need to make a list of how much debt you have and to whom you owe the money to. This will help you have a better understanding of exactly how much you owe.

Next, you need to come up with an action plan to pay off the debt. There are a variety of different ways to do this. However, you will need to find a solution that will work best for your personal needs. One of the first steps of your plan should be to get rid of your credit cards. You can simply cut up your credit cards so that you are not tempted to use them while you are trying to pay them off. You can also stick them in a bowl of water and put them in your freezer. This will help curve those impulses to use the credit cards. One card can be kept for emergencies. However, it is important that the card only be used for a true emergency, not a sale at the mall.

Many people will turn to debt consolidation in an attempt to get their debt under control. If you have several credit cards, you can attempt to put all of your debt onto one card. If you choose to go with this route, choose the credit card with the lowest interest rate. This will help you to pay off your debt quicker and will save you money in the long run.
You can also choose a debt consolidation loan. You can obtain a personal loan and pay off all your debt. Then, you can make monthly payments to pay off the personal loan. Again, by consolidating your payments into one monthly payment, you are not only helping to pay off your debt quicker, but will most likely save you money in the long run. If you have equity in your home, instead of taking out a personal loan, you can take out a home equity loan to help consolidate your debt into one easy to make payment.

Whether you choose a personal loan or a home equity loan, be sure to shop around. There are a variety of different online companies that can help you to obtain a loan. You will want to make sure that you are getting the best possible terms of the loan as well as the best interest rates. Another solution you may want to consider is debt settlement. This is a great solution for long term debt. With debt settlement, a management company will try and negotiate to reduce your payments and or lower your interest rate. It is important to note that if you go with a debt settlement, it could have a negative impact on your credit rating.

Debt and harassing phone calls do not have to be a way of life. There are a variety of different steps you can take to help reduce your overall debt and stop the harassing phone calls. It is important that once you get your debt under control, you do not fall back into the same patterns you once had. Before you can begin paying off your credit card debt, you must quit using the cards. Otherwise, you will quickly be back to the large debt and harassing phone calls.