It’s Also What You Do About Your Debt

In the last post, I said that your major problem is how you feel about debt. Of course, changing the way you feel doesn’t automatically fix anything, but it sure spur you to take action. One problem that is surprisingly common is that a lot of people don’t really even have a clear idea of how much they owe. They just know that they spent the month grinding their teeth as they struggle to make minimum payments.

3 Debt Remedies to Begin Improving Your Finances Today

Before you can decide if you need to contact help or handle your own credit negotiations, you really need to take stock of what you owe and and what you have. These are the first three steps to begin today in order to begin remedying your finances:

• Gather up your debt: If you don’t know how much you owe and aren’t registered at online credit card sites where you can research your balance, you can certainly get on the phone and call your creditors. Alternatively, you could request a free credit report which should show your balances.
• Take stock of your assets: This is usually the good part of the process. You can figure out the income you have and if you have any assets that you could sell in order to help you make payments.
• Make a budget: You can make a simple budget with spreadsheet software or even on a scrap of paper, but you really need to know what you have coming in and what’s going out.

You will need this information anyway. If you decide to attempt DIY debt negotiations, you will need to tell your creditors what you can pay or why you can’t pay what they say you owe. A credit counselor will also need to work with you to develop a budget, but he or she will need information from you.

Documenting Your Expenses, Assets, and Income Makes Debt Decisions Easier

Anyway, it helps a lot of debtors to have some concrete action plans to follow. Rather than suffer because of paralysis, why not begin by getting your figures documented. You really won’t be able to make a good decision without knowing where you stand. As you actually understand your options, very often, the right choice becomes clear.