The Road to Debt Relief

Living with debt is not something someone hopes for, but it happens and it usually becomes far more severe than it should before something is done to eliminate it. Once many individuals realize they have a problem with debt, they are too embarrassed to ask for help so they let themselves dive further into debt. Being embarrassment and ashamed are regular emotions many encounter when they realize they are in debt however you are not alone so you shouldn't feel embarrassed.

Everyday people get into debt, but everyday people are looking for ways to debt relief, whether it is through self-help, credit counseling, dept management programs, or other resources. If you are struggling with debt you no longer have to feel ashamed or embarrassed because there are resources that will steer you in the right direction towards eliminating your debt. There are a variety of options one can choose from so you have the option of choosing what debt relief option is right for you.

First you have to consider how serious your debt is. Remember having debt isn't good period, but you have the possibility of different solutions depending on the type of debt you are in. You have to decide what you think the best solution is for you and stick with it, to make sure you eliminate your debt, and stay out of debt for good.

Debt Relief Options

If you feel you have little debt but are starting to get concerned about being able to pay it off, consider setting up on a budget if you don't have one already or reevaluate your current one. A budget is a way to view your personal cash flow, which is your money coming in, and your money that goes out each month. You'll need to keep track of all your spending for one month to establish an accurate household budget. Keep a record of your monthly income and all your monthly bills and other receipts even with cash.

Once you see what you are spending and how much, you should be able to cut back on certain items especially on impulse buys like candy bars or everyday items you don't think add up to a lot but do in the long run, like morning coffee at your favorite coffee shop. Make goals for your self to set aside a certain amount of money each month to put in savings or to put towards paying off other debt.

After you create a budget you can choose to eliminate your debt on your own by ripping up your credit cards, dealing with your creditors, and still making all your payments on time. However if you tend to be late on monthly payments it's recommend you consider the next option for debt relief.

If your debt is severe it's recommended that you get help and fast. This is where most people's embarrassment sets in and they are afraid to get help. However credit counseling is a great option to help you eliminate your debt. You can find companies that do it for free, and all your information is kept confidential. A credit counselor will evaluate your current situation and then recommend the best solution for you.

A credit counselor may suggest a debt management program in which the counselor would work directly with your creditors as well as provide you with additional education, guidance, and motivation to make sure you get through the plan and pay off your debt. This simply includes sending a single payment each month to the agency, which is then dispersed to the creditors that you owe money to.

Another debt relief solution is by debt consolidation, where existing debts and mortgage payment are compiled into one. You would take out a loan, often times using your home as collateral and the lender sends you a check and you pay off your creditors. However if you fall behind you put losing your house at a serious risk.

An absolute last resort and not recommended is filing for bankruptcy. Bankruptcy is a court action that stops lawsuits and any other attempts by creditors or collection agencies to collect from you. However, it comes with a high price. It usually stays on your credit report for a full 10 years, causing great difficulty in using credit to purchase a car, home or other loans. It can even restrict you from certain types of employment. Bankruptcy shouldn't be thought of as a "get out of debt free card" because it can still completely destroy your credit worthiness for a long period of time.

The Road to Recovery

Now that you have all the options, it's up to you to decide what you need to do. Getting out of debt is in your hands, you should never feel alone or embarrassed because there are others in your same situation and they are successfully getting out of debt with the use of each of these debt relief options. For more information on credit and debt management go to http://www.inchargeorg.org where you will find professional budget counseling, debt management, and financial education programs at your fingertips.

Katie Spencer is a contributing writer for a number of international financial journals both online and in print. Katie has been delivering financial education to the public in a variety of areas to include college budgeting, credit and debt management, and money saving tips. Recently, Katie has been in partnership with a national educational foundation to deliver financial advice to American consumers via the web. For more information and to read the latest articles published by Katie, please visit http://www.inchargeorg.org

Deal with All Your Debts with Care!

Lots of people take a large ammount of loans and suddenly they discovered that they're... Read More

Corporate Debt Management ? Perspective on the Why

Entrepreneurs have a tough time in their formative years. They try too many things to... Read More

Credit Card Debt: How to Get Rid of It

This method is simple, but requires some discipline.First, you have to stop any new spending... Read More

How to Deal with Bill Collectors

So you've screwed up. You're drowning in debt. Maybe the credit card was burning a... Read More

Can You Escape the Trap of Ever Growing Debt?

It's difficult not to be concerned when facing numbers like these:43% of U.S. families spent... Read More

Personal Debt Reduction Practices

Personal debt reduction practices, the steps people take to relieve the debt in their lives... Read More

Drowning in Debt? Tips and Tricks for Getting Out of Hot Water with Creditors

Do you, like millions of other Americans, feel like you're sinking in an ocean of... Read More

4 Simple Ways to Solve Your Debt Burden

Getting Behind Getting behind on your debts owed can be a very frustrating and trying... Read More

Debt and Your Dreams

You may not realize what that credit card bill is doing to you?Bob is a... Read More

Credit Card Debt Elimination

Credit card debt elimination can be done with a good plan and a little patience.... Read More

Bankruptcy Interest Increases as Deadline Approaches

Congress recently passed sweeping legislation that will significantly reform American bankruptcy law. Designed to eliminate... Read More

Bouncing Back from a CCJ

Should you be unfortunate enough to face a CCJ ? but subsequently succeed in having... Read More

How To Avoid Medical Collections

With medical collections costing doctors millions upon millions of dollars in unpaid bills and collection... Read More

Credit Counseling ? Signs That You May Need Help

Credit counseling is a viable option for those who are feeling the stress of being... Read More

Dealing with Thingitis

Debt is quickly becoming an epidemic in America. However, through the past 50 years, America... Read More

Stop Debt Collectors

Can you stop debt collectors ? . . .You better know you canYou can stop... Read More

Senate Passes New Bankruptcy Law

The United States Senate passed a law on March 10, 2005 that changes the bankruptcy... Read More

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking control of your money! Add... Read More

Are You SURE Your A Bad Debt?

Many people who seek the advice and guidance of debt counsellors are driven to them... Read More

Yes to Less Debt

Feeling stressed by the amount of debts you have? Three years ago Michelle was struggling... Read More

Bankruptcy - The Easy Option?

Incredibly, since the changes in the bankruptcy law in April 2004, debtors are more likely... Read More

How Do You Spell Debt Relief?

Of all the problems possible in a marriage, finances cause the most marital discord. Many... Read More

Debt Recovery Can be Easy

OK, so you are up to your head in debt. You are stressed out, it... Read More

Taking The Plunge Into Bankruptcy

Bankruptcy is one of the most difficult things a person has to do. The decision... Read More

Debt Free Living - 5 Tips To Get Out Of Debt

A few times I wonder what sort of credit system moved the global economy 200... Read More

Fast Track Out of Debt

You go to the mail box and scan - a couple fliers (nah), your magazine... Read More

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way to get money is to... Read More

Help to Get Out of Debt

Debt Help is the stepping stone to debt elimination and financial recovery. Debt help analysis... Read More

Pay Off Your Student Loans and Reduce Your Debts

Financing a college education is one of the more expensive debts you may incur. Student... Read More

Future Secured? Oh Really?

A headline for a retirement annuities flyer declares "Future Secured!" Was your reaction like mine?... Read More

Bankruptcy - The New Scarlet Letter

Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2, "On the breast of her... Read More

Going Bankrupt in the World

It all starts by defaulting on an obligation: Money owed to creditors or to suppliers... Read More

What is Debt Settlement?

Debt settlement is the process of negotiating with your creditors so that you are able... Read More

What Are The Benefits and Consequences Of Getting Rid Of Debt The Easy Way

We have all experienced getting so far in debt we don't know how we're going... Read More

Debt Problems? You Can Negotiate With Your Creditors

It is always possible to negotiate with creditors ? even if they have already taken... Read More

Personal Bankruptcy: Last Option To Legally Stop Bill Collectors

Do you have stacks of unpaid bills?Are you in debt?Are bill collectors hounding you?Are you... Read More

How to Reduce Your Debt in 5 Easy Steps

If you have incurred substantial personal debt, consider these options: budgeting, debt consolidation, credit counselling... Read More

Getting Past The Idea Of Budgeting & Saving Money

I'm sure you'll agree that budgeting, saving money, and eliminating debt are very appealing ideas.... Read More

The Human Side - Debt Stress

In all the technical discussion you hear about credit card debt, the best ways... Read More

Bankruptcy ? Bankruptcy Myths

Bankruptcy has long been a big question mark in the eyes of the consumer. After... Read More

Whatever You Do....Dont Save Money!

No, that's not a misprint. Even though falling interest rates are good when you want... Read More

Slowing Spending - The Key To Your Debt Plans Success

Anyone who embarks on a debt reduction program should know the rules for success. There... Read More

New Bankruptcy Law ? Targeting the Wrong People?

Last April, President Bush enthusiastically signed into law the oddly-named Bankruptcy Abuse and Consumer Protection... Read More

New Bankruptcy Law Makes it Harder to Stop Foreclosure

On October 17, 2005 President Bush's sweeping bankruptcy reform law goes into effect forever changing... Read More

Is Debt Negotiation Bad?

Educating yourself about the ins and outs of debt negotiation is a good first step.... Read More

Individual Voluntary Arrangements- A New Alternative to Bankruptcy

This May, the Department of Trade and Industry in the UK found that there were... Read More

Use A Debt Checklist To Examine Where You Are

A Debt Checklist allows you to look at items and areas of your financial life.... Read More

The Debt Free Lifestyle

Many people have been taught that you cannot get ahead without debt. We are also... Read More

Debt

We all know about debt. If you don't have too much as an individual you... Read More

How to Get Triple A Credit in 25 Days

Good credit is everyone's dream. A wise use of credit can go a long way.... Read More