If your debts are on the cusp of overtaking you, you shouldn’t just sit pat while they grow. You must exercise your options, which include debt resolution. But there are several steps you should take to get the ball rolling. Without further ado, here’s what you should know about getting started with debt resolution.
Some 72 percent of U.S. residents are experiencing stress about money. Of them, 22 percent are extremely stressed, according to the American Psychological Association. In addition to credit card debt – a growing issue, especially in this inflationary economy – home mortgages, vehicle loans, student loans, and medical bills are the most common types of consumer debt. In short, you’re far from alone.
How to Know When Debt Resolution is Necessary
You likely need debt resolution if:
- Your credit cards are maxed out
- You’re getting calls from collectors
- You’re using plastic for necessities
- Your income has dropped
- At times you can only afford minimum payments
- You’re frequently late with your credit card payments
- An unexpected expense rendered you unable to pay on your debts
If you see yourself in at least two of these, you’re likely a prime candidate for debt resolution.
To get started with debt resolution, you should first take the following steps:
Know How Much You Owe
This is your first step toward resolving your debt. To deal with your debt, you must first know how much debt your have. This means gathering all you’re your bank statements and bills and making a list, including your interest rates, monthly payments, and due dates.
Scour Your Credit Report
Get your annual free copy of your credit report and look it over for inaccuracies that could be dragging your score down. You’re already in a bit of a pickle, so there’s no sense in abiding errors. Again, you want to know where you stand and what you must do to improve.
Calculate the Cost of Your Debt
The cost of debt can quickly add up. For example, if you have a $10,000 personal loan with 8 percent interest over a 10-year period, you’ll wind up forking over $4,559.31 in interest. It’s even worse with credit card debt. For example, let’s say you’re paying 19.9 percent interest on $10,000. Over 10 years, you’re paying a whopping $13,111.15 in interest. This is how you’ve gotten to debt resolution.
Enroll in a Debt Resolution Program
If you’re juggling your debts, missing payments, or barely making your minimum payments, it may be time for debt resolutions for your accounts. While the solution is widely successful, the debt resolution industry is rife with scammers. We suggest you consider Achieve’s debt resolution program, which is credible, reputable, and has a solid track record.
Establish a Budget
It’s high time you establish a budget since over-spending is the main reason so many people fall into debt. You simply must know how much you’re spending and what you’re spending it on. This way, you’ll create better spending habits so that you’ll never find yourself in this position again. Just make sure you include room in your budget for “wants” as well as “needs,” so you’ll stick with it.
Getting started with debt resolution is not easy. After all, you didn’t get into your situation overnight, so getting to the bottom of it can be messy – and fraught. But you know that things will not get better if you do nothing. In fact, they’ll only get worse. And again, we do recommend Achieve to help you resolve your obligations.