When you start off on your quest for debt help it can be a long and arduous road, especially if you're not sure for what you should be looking for. Here are a few tips to help you get a better idea of what solutions to look for, for different types of debt.
Let's start with plastic debt. When I say that I mean credit cards, store cards and any other form of electronic debt you have contained on a plastic card. Now normally the worst thing about this type of debt is the interest. Credit cards are bad enough with the APR usually somewhere around 16%, but the store cards really take the debt biscuit with interest anywhere up to 25%. You need to bring this down immediately.
You can do this with a balance transfer to another credit card that is offering 0% interest for an introductory period. This means that you stand to make huge savings on interest alone and can put this money towards slicing off your debt. If you put every penny you have towards paying off your debt for this introductory period, you'll find that when you have to start paying interest again, the amount you owe and the interest you pay will be significantly reduced. If you want, you can repeat this debt help process and transfer your balance again onto another card. A lot of people have been known to do this but make sure you're responsible and it is saving you money and not tempting you to spend more.
A debt consolidation loan is the other debt help cure, but this is more for multiple debts. You basically take out one big loan to pay off all you plastic debts. This leaves you with just one monthly repayment to make which is a lot more convenient, and also gives you a much better rate of interest. Be careful choosing a debt consolidation loan though because without proper research you can end up owed more than you did in the first place.
If you have serious debts from things like mortgages, utility bills and other household expenses and just do not see a way out, then you need professional debt help . I'm advise you start off by contacting your providers and tell them you're struggling to make repayments each month and ask if there's anything they can do. Anything they offer you will be a bonus and if a few are willing to help you out, then you might find it presents things back in your favor.
Another good source of information and debt help is your bank. Make sure you pop into your local branch and tell them of your plan. They might also be able to help find you a solution that can turn your finances around.
Finally, if none of these things work and you have to consider an IVA or a personal bankruptcy, then make sure you seek impartial advice before visiting a debt management company. That way you know you'll be making the right decision before entering into the most serious financial procedure of your entitlement life.
Debt is not a pleasant thing and it needs dedicated help to ensure it does not exceed you in your day to day life. Be smart if you're in debt and do something about it right now.
Source by Thomas Baugh