Wise Calls, Part 3
Wise Calls
Debt issues all lead to wise decisions if you have no way out. I have found, over time, that one of the most valuable resources that I have found comes from another resource. Most people, if not all, have little or no credit card debt, medical bills that are behind and people who are practically debt-free.
There are several resources I have found, but two in particular stand out as absolute necessities. There are several options for people as far as other types of debt are concerned, but remember that the battle on behalf of consumers should not be looked at simply as a contest of who is willing to sacrifice the most. It should always be looked at as simply a way to get out of the debt you have now, which may in turn protect you and your family from future financial disaster.
Whether it is specifically a car, house, educational loans or credit card debt, one of these programs that I found to be most useful is the Debt Snowball. This option first debtredits.com and then nbr notation, either at author’s website or in our forums. The Debt Snowball works as follows: first you find out your total debt amount, smallest payment and interest rate against whatever your debt may be. From there, you determine how much you have to pay on the smallest debt (most often your credit card repayment) and add to that the minimum amount from your other creditors. Continue to make minimum payments to the other debts and when you have paid off the smallest amount, you add that entire amount to your payment of the current debt. Continue this process until you have accomplished the task with your smallest amount yet to be paid, and you will pat yourself on the back! Wise Calls
There are a couple of disadvantages to this though. First, through the power of compounding interest, there will be some people who will have a smaller amount to pay toward their first debts verses paying the full amount toward multiple debts. This means, if your debt snowball includes those debts that are just several months or years old, being able to pay the minimum for the majority of the time, while still adding to the payments, could actually increase the amount you have to pay. If you find yourself in that situation, you are totally solving one of the problems created by the snowball, but have also created another. Before making another payment, you must pay off the old debt first. Next, you still have to pay this last monthly payment whatever it is, so you go through that again. As you can see, this is a great option if it is used correctly. Wise Calls
Personal credit debt counseling services offer another option, the Debt Management Program. With the Debt Management Program, you are able to consolidate all of your credit card and charge account debt into one account. They also take the time to present to you alternatives to bankruptcy, which, in tough economic times, seems to be an after thought. By consolidating your debt, you make one payment. They also ensure that you make your monthly payment on time, which makes it easier to stay on track with your plan.
There are several possibilities out there for people which are looking for debt relief. Just be sure to investigate each carefully before making a decision on what debt relief option is best for you. Wise Calls