Many Americans are struggling financially.
With a slowing economy, high gas prices and increased food costs, it's getting harder and harder for individuals to stay afloat on the financial front.
These things, coupled with high amounts of secured and unsecured debt, are responsible for a great deal of stress for individuals and families all across the United States.
However the situation is not hopeless.
People can climb their way out of debt.
Yes, it will be terribly difficult, but individuals can make changes and choices that will help improve their situation.
In order for this to happen, people have to get honest, cut expenses, increase their income and call their creditors.
Getting honest is perhaps the most important step.
A lot of times our financial situations get worse because we ignore them.
We don't want to admit there is a problem nor state the obvious.
Instead, we bury our heads in the sand continue to spend, knowing in the back of our mind that we don't have enough money to cover not only our current expenses but neither our past or future ones either.
Individuals then need to cut the fat.
Reduce expenses.
Anything that you don't need is expendable.
Take a close look at what you're spending money on, determine what things you can do away with.
Now this may be enough.
Cutting your expenses may give you the extra money that you need to pay all of your bills, pay off your debt and save for the future.
However, if this not enough, you will need to find ways to increase your income.
This may include working overtime or getting a second job.
Next, contact your creditors.
Call and see if you can negotiate the removal of any late fees.
You may also want to consider asking for a reprieve for short amount of time.
During this time, you won't have to make monthly payments.
This will be for a predetermined amount of time that you and the credit card company both agree on.
You may also want to try to negotiate lower payments.
Generally, you have more leverage when you haven't paid your credit card bill for a while.
Of course this will hurt your credit, but credit card companies are more willing to work with you when they realize that they may not get anything at all.
Also, consider attempting to negotiate a settlement with your creditors.
They may allow you to pay 50% of the total amount that you owe if you agree to pay it all in one bulk sum.
They may also allow you to pay it back over the course of a couple of months.
Think about signing up for credit counseling.
Some credit counseling companies work similarly to debt negotiation companies.
They will be able to negotiate pay off amounts with your creditors and perhaps get your interest rates lowered.
You will pay the credit counselor every month and then they will pay each of your creditors.
You may also want to consider debt consolidation.
If you have equity your home, you can use it to pay off your credit card debt.
Only do this if you know that you can make the payments, otherwise you may be in danger of losing your home.
With a slowing economy, high gas prices and increased food costs, it's getting harder and harder for individuals to stay afloat on the financial front.
These things, coupled with high amounts of secured and unsecured debt, are responsible for a great deal of stress for individuals and families all across the United States.
However the situation is not hopeless.
People can climb their way out of debt.
Yes, it will be terribly difficult, but individuals can make changes and choices that will help improve their situation.
In order for this to happen, people have to get honest, cut expenses, increase their income and call their creditors.
Getting honest is perhaps the most important step.
A lot of times our financial situations get worse because we ignore them.
We don't want to admit there is a problem nor state the obvious.
Instead, we bury our heads in the sand continue to spend, knowing in the back of our mind that we don't have enough money to cover not only our current expenses but neither our past or future ones either.
Individuals then need to cut the fat.
Reduce expenses.
Anything that you don't need is expendable.
Take a close look at what you're spending money on, determine what things you can do away with.
Now this may be enough.
Cutting your expenses may give you the extra money that you need to pay all of your bills, pay off your debt and save for the future.
However, if this not enough, you will need to find ways to increase your income.
This may include working overtime or getting a second job.
Next, contact your creditors.
Call and see if you can negotiate the removal of any late fees.
You may also want to consider asking for a reprieve for short amount of time.
During this time, you won't have to make monthly payments.
This will be for a predetermined amount of time that you and the credit card company both agree on.
You may also want to try to negotiate lower payments.
Generally, you have more leverage when you haven't paid your credit card bill for a while.
Of course this will hurt your credit, but credit card companies are more willing to work with you when they realize that they may not get anything at all.
Also, consider attempting to negotiate a settlement with your creditors.
They may allow you to pay 50% of the total amount that you owe if you agree to pay it all in one bulk sum.
They may also allow you to pay it back over the course of a couple of months.
Think about signing up for credit counseling.
Some credit counseling companies work similarly to debt negotiation companies.
They will be able to negotiate pay off amounts with your creditors and perhaps get your interest rates lowered.
You will pay the credit counselor every month and then they will pay each of your creditors.
You may also want to consider debt consolidation.
If you have equity your home, you can use it to pay off your credit card debt.
Only do this if you know that you can make the payments, otherwise you may be in danger of losing your home.
SHARE
