Counseling Debt Reduction

Many people have a rough idea about how much they owe their creditors. But there’s no substitute for having true, accurate numbers – not guesstimates. To fill in the proper figures on your written sheet, or your computer spreadsheet, you’ll have to go find your most recent statements and invoices from your creditors. Take as much time as you need today to collect all this data. It’s a crucial step in you getting your finances together.

It’s also a good idea to call the companies you owe and ask for the latest information about your debt, especially if you’re looking at statements that are more than a month old. Even if the statements are current, you should call your creditors because some of the information on those statements may have changed. For instance, you may have charged additional items since the closing date on your credit card statement, so now your debt is actually greater than your current statement indicates. Also, you may have had a teaser rate or a lower interest rate in the past, and maybe that interest rate has now jumped. Whatever the case, you need to have the most accurate information that is currently available.

Firstly, if you can bring yourself to do it is to cut up ALL your cards, IT IS A MUST. If you can’t do it then get someone to do it for you. Then get all your statements together and add up how much you owe. After you have finished crying phone every one of them and explain your situation and ask if they would be willing to stop all future interest accumulating on the account and also to come to a reasonable and affordable monthly payment till you can clear the account. They MUST do this, its the law and you MUST pay it on time otherwise they will start legal proceedings. The only place I would say to get advice is the CAB as they have no financial interest in you. All other companies will do is get you into more debt by offering consolidation loans. Its gonna take time but you can do it, just stop spending on a whim and perhaps do a couple of car boot sales to get some cashflow.

The CCCS are very good to work with, and they get the interest you owe stopped. Consolidation loans are bad. Have you read ‘the money secret’ ? by Rob Parsons, it’s an excellent helpful book

concolidation loan will be more gentle on your credit