Helpful Tips for Personal Debt

Go Back


Are your finances out of control? When you are unable to repay a debt on time it can be stressful on yourself, your family, and most significantly...negatively impact your credit. The inability to repay a debt on time and consistently effects your credit rating, which many people are interested in for the purposes of deciding whether or not to give you a loan to buy a house or consider you for employment. Here are a few pointers to help you get the ball rolling and getting out of debt and on your way to financial freedom.

Tips for Getting Out of Debt:

• Know who you are in debt to and what the details are for each debt. Take the time to take a look at your agreements with your debtors. What kind of interest rates are you paying? Do you pay a late fee for overdue bills? If you don’t know, call the business/creditor that you owe the debt to and ask. At the bottom of the page is a debt recovery worksheet to help you figure out who, what, when and where your money is going.

• If you are struggling to make payments or know that you are on the verge of missing payments, take control of the situation. Call the business/creditor and negotiate a new payment plan until you can begin to make larger payments. It is better to make a small payment then no payment at all…you will be slowly chinking away at the debt until you can begin to make larger payment and eventuallly it will be paid in full. Call before you miss the payment due date or you will begin getting calls and more embarrassingly calls at work or even to your family members.

• If you are deeply in debt and owe many businesses, you will need specialized help. Consider working with a nonprofit debt counseling service, such as, the Consumer Credit Counseling Service, which is available to anyone who may be in need of their help and expertise. They will work with you and your creditors to set up a repayment plan. You can find them online at, http://www.cccsatl.org/, or give them a jingle at, 1-800-251-2227.

• Take a hard look at your spending plan. Do a budget and try to come up with new ways to cut expenses. Can you carpool instead of drive? Can you take your own lunch and snacks to work? How can you cut food and clothing costs? Which costs are fixed and which are variable? Is this a need or a want. Here is a Printable Budget and an Interactive Budget for you to print for your own personal financial planning.

• You will have to find a way to increase your income. Maybe another family member can contribute financially. Or, you can work extra hours at your job. Have you considered a second, part-time job? If you can increase your income so that it totals more than your expenses, you CAN get out of debt.

As hard as it is, don’t ignore bills and past-due notices. A poor credit record follows you for years. It can make it hard for you to buy a house, get a loan, and maybe even get a job.

Sources:
www.nfec.info

DEBT WORKSHEET
Debt Recovery Worksheet