Once you start noticing that your credit card debt (or any other debt for that matter) is getting out of hand, you need to start looking for the best debt settlement strategy for your set of circumstances. You may already be in the red or are steadily on your way there, but a few adjustments to your expenditures and some sound advice can get you back on the right path.
Cutting your expenses
If you have not already done so, you need to find ways to avoid spending money. Here are a few ideas:
- Sell your second car
If you have two cars, you should certainly sell off one of them. This will get you some quick cash, which you can use to reduce your debt as well as cut back on your expenditures by thousands of dollars each year. Granted, it is quite the adjustment but well worth it.
- Smart grocery shopping
Take advantage of the sales in your local grocery store to stock up on the non-perishables and foods that you can freeze. If you stock up two months’ worth of food, you will cut down on your monthly shopping to just perishables, which will save you a lot of money.
What often sends people into the red especially with credit card debt is impulse buying. If you want to save your fiscal life, you need to stop this. Buy only what you need, at least until you have this problem cleared up.
- More than the minimum
You can cut down that debt balance faster by paying more than just the minimum. Every dollar paid above the minimum makes a difference – so strive to do that.
Negotiating with your creditors
If you are not already in too deep, these tips may help but beyond that, you need to talk to your creditors and make some kind of a deal. You may choose to use a debt settlement company or do it yourself, but either way, this may be necessary especially if you have already defaulted on some payments.
- Get your financial facts straight
Look through your financial records for a proper diagnosis of the situation. Make a list of all your debts and expenditure vis-à-vis your income. These details need to be on your fingertips in order to build a strong case for debt negotiations with your creditors.
- Get some advice
Others have been through this before so seek out their advice before starting these negotiations. It could save you a lot of time and trouble.
- Develop a thick skin
Credit companies will shame you into not getting a good deal when you are negotiating your debt. Don’t take what they say to heart, just stick to the numbers. Focus on how much you can pay upfront and how much you would be able to pay in the long run.
- It’s a marathon
Don’t assume that you will get a good deal on the first try. It may take months of negotiation especially if you are doing the negotiations yourself, so be patient and persistent.