2005 consumer debt Article:
If you have a lot of debt and are looking for a way to dig yourself out, debt
management can be the way to go. A word of caution, proceed carefully. Many debt
management agencies make promises that are not realistic. It is important to
research each company you are considering very carefully to avoid digging a
deeper hole. Choose debt management agencies that are reputable. Ask for
references, and, of course, read the fine print before you sign anything. Once
you begin your research into debt management programs you may discover that much
of what the agencies offer, you can do on your own. If you choose this route,
the following plan will help you get started.
Collect all of your bills together and make a list of:
- amounts owed
- account numbers
- contact information (address and telephone numbers)
Debt management is more palatable when you have a clear idea of what you owe
and to whom. Contrary to popular wisdom, ignorance is not bliss. Unfortunately,
hiding under your bed will not erase the debt. Only time and a sound repayment
plan will. Okay, so you've cleared the first hurdle - facing the problem. Now
you must take a look at your budget so that you can develop a workable repayment
plan. You may feel some hesitance about calling creditors if previous
interactions have been strained - but, still you must call. Take a deep breath
and remind yourself that it is not personal and you are not a deadbeat. You will
be calling a person who is doing a job. You will have a job to do as well -
implementing a debt management plan that gives you back your life. Calling is a
critical step that cannot be avoided. You may be surprised at the cooperation
you receive. From offers to reduce interest rates or bring your account current
with a payment or two creditors are often willing to support your debt
management plan. After all, it's in their best interest.
