Many Appleton, Wisconsin, residents owe money, usually to credit card companies. Credit card holders need to pay credit card balances on time to avoid racking up huge interest charges. However, some debtors, especially those experiencing financial challenges due to unemployment, are having a hard time paying debts on time or at all and are desperate to find a debt relief solution. Fortunately, some simple tips are available to help eliminate debt.
The first step is to develop a budget and stick to it. Debtors should know their monthly income and how much of it goes toward expenses. Create a list of income from various sources and fixed expenses such as car payments, rent or mortgage and utilities for a clear picture of finances. Separating “wants” from “‘needs” also can help reduce expenses so that a debtor can put extra amounts of money toward paying off debts.
The next step would be to contact creditors. Although this may not be as easy as it sounds, informing creditors of their current financial state is necessary, because it allows creditors to understand why the debtor is struggling. Often, creditors will allow debtors to modify payment plans.
The third step is to consider help from a debt relief service. Credit counselors and other companies that offer debt settlement services can help debtors consolidate debts. However, be wary of debt relief companies that offer programs which appear “too good to be true”, because they usually are just that – too good to be true.
Finally, debtors may consider filing for bankruptcy. The stigma associated with bankruptcy may keep debtors from filing. Appleton, Wisconsin, readers should understand that bankruptcy can grant debt relief through various methods, including liquidation and reorganization. Getting the facts directly from a bankruptcy attorney can help people who are dealing with huge debts make the right decision regarding bankruptcy.
Source: Erie Times-News, “Tips for handling credit card debt,” Mar. 9, 2014
