Some tips for resolving debt problems include making a budget, seeking help from debt relief services, contacting creditors to work out a modified payment plan and utilizing a debt consolidation program, the Federal Trade Commission advises. Consumers can also consider filing bankruptcy.Continue Reading
People looking to resolve debt problems may want to first try and identify the cause of their debt, where their money is going and what type of behaviors got them into debt to begin with, Credit.com says. From there, they should come up with realistic budgets for each category of spending and track daily spending so they can see how much money is going out each day.
Another tip for resolving debt is to leave credit cards at home on shopping trips, Credit.com says. Freezing credit cards in ice to make accessing the cards difficult is a simple way to limit credit card use.
Refinancing and consolidation can help to help lower interest rates and reduce fees and penalties, Credit.com suggests. Selling items such as an extra car or jewelry for a quick pay off is also suggested. Structuring debts using the rollover method is helpful as well. With the rollover method, as soon as one debt is paid off, the newly available payment is transferred to the next debt.Learn more about Credit & Lending