Debt Assistance Guru

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If you’re like many people looking for debt assistance then you probably have more than a single debt to pay off. You may have overdrafts, loans, credit cards and more that you’re trying to juggle and pay off. But with all these different debt payments due it can be a struggle to figure out what you should prioritize.

The debt snowball principle is a concept to help you figure out exactly how to arrange your debt repayments in order to get out of debt as quickly as possible without having a monthly struggle over what to pay whom.

In essence, you agree a sum of money that you can realistically afford to pay in debt repayments each month. This figure should be set in stone and you need to make yourself a promise, as well as your creditors, that this will be used each and every month to pay off your debt no matter how much or how little you have.

The reason it is called the snowball principle is because of the way a snowball rolling down a hill will grow in size and power over time until it is an enormous thundering ball of power at the end.

Because you commit to pay a certain amount in debt repayments each month, as your debts start to drop, you manage to pay off a bigger and bigger chunk each month. Every time you pay off a debt completely, rather than taking the money were using to repayment that debt to enjoy yourself each month thereafter you instead use it to make even bigger payments off your other debts. In this way you pay them off even faster, pay less interest as a result and get out of debt as quickly as possible.

Now it should be said that there are two schools of thought when it comes to actually calving up your monthly debt repayment. Firstly of course you need to ensure that you are at least covering the minimum payment for each of your debts to keep them in good order and to keep your credit strong.

But over and above your minimum payments of course, the more we pay off, the faster the snowball will grow and the sooner you will become debt free.

Therefore some authorities suggest that you should focus on your highest interest debts so you pay as little interest as possible overall. Once you have managed to pay those off, you can then focus your attention on paying off your smaller or lower interest agreements.

Other authorities suggest focusing your excess cash on your smallest debts initially because these will be the quickest and easiest to pay off and so you will find the concept tremendously motivating as you make your final payment on one debt after another. And as you pay off those smaller debts of course you have even more finances available to really start making some progress on the larger, higher interest debts.

I can see both the pros and the cons of both of these techniques and I would advise you to put some careful thought and consideration into which of these two techniques will really make the most sense from your perspective.

Would you rather get out of debt quickly, but using a method which requires far more motivation, or would you rather get out of debt more slowly, but all whilst being motivated as you see one debt after another being wiped out?

Which one will keep you most motivated? Which ones will help keep you going along this difficult but rewarding path?

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One of the reasons that many of us get into debt in the first place is because of a financial emergency of some form. For example maybe our car dies on us, but due to our job or our lifestyle we simply can’t live without one so we go out and get a loan or finance agreement to buy a new car.

Maybe we fall sick and are unable to work which digs into our savings or we have a funeral or medical emergency to pay for and simply don’t have the funds. For some people even taking an annual family vacation is seen as a necessity and if we don’t have the funds for it we simply stick it on the credit card.

It’s a sad fact of life that no matter how well we may budget, these “emergencies” crop up more often than we would like and by their very nature normally take us by surprise.

A sizable sudden need for money can be a catalyst for getting into debt and even worse once we’re in debt to begin with it can be all too easy to think “well, we’re already $x thousand in debt, what difference is another few hundred dollars going to make?”. Before long you’ve dug a hole so deep you’re not sure if, let alone how, you’ll ever climb back out again.

So a key element to debt assistance and paying off your debt once and for all is to set up an emergency fund to cover these exact circumstances.

Experts disagree about what size the fund should really be with debt experts stating figures anything between 3 months and 12 months of your average monthly income. Whatever the figure you decide on, I think most people would agree that the bigger your emergency fund is, the more financially secure you will be and the less risk there will be of you having to rely on debt to cover your expenses.

The best way to set up an emergency fund is to set up a special savings account where the money can accrue over time. Ideally you want to find the account that offers the highest interest rate while fully protecting your money and allowing instant access. There’s no point in an emergency fund after all if it takes you 30 days to be able to access your money.

Then simply set up an agreement with your bank where they will automatically transfer a sum of money – 10% of your monthly income is a frequently-recommended sum – into your emergency account.

Note that the emergency account shouldn’t be the same as your standard savings account where you’re putting money away for your retirement or a deposit on a new house.

This fund should be seperate, untouched and *only* for emergencies. Keep on paying into that emergency account automatically each month until it reaches the sum of money you have decided upon.

Again don’t be tempted to dip into it – even temporarily – to cover things like a vacation. Save for these in advance and instead keep your emergency account fully safe and untouched.

Because next time a financial emergency *does* arise in your life you’ll be glad you have that buffer to protect you.

photo credit: Alex E. Proimos

Negotiating with creditors on outstanding debts is entirely possible when you have some money to throw at the problem. After all, all they really care about is getting their cash so if you can make a gesture of goodwill and at least offer them *some* of the outstanding amount you have a useful bargaining chip for getting yourself out of trouble.

But what happens if you get hit with a debt and you *don’t* have any money available to start paying off the debt? What if you are being chased and harassed for money you don’t have, and you’re looking for a way to get your creditors off your back?

The first thing is to accept both to yourself and to your creditors that you *will* pay them back exactly what you owe. It is too much like hard work – and can cause too many sleepless nights – to try and avoid your creditors for ever more, wondering if and when they will catch up with you and what the results will be.

Simply making contact with your creditors and talking them through your situation can, in many cases, help to reduce the pressure on you. Once they know where you are, how to find you and that you’re serious about wanting to pay off your debts then they feel far more comfortable with the situation.

You have faced the problem head on and initiated communication.

Now of course communication alone won’t be enough but it is a start. Next, your creditor is going to want some concrete plan of exactly how you will be paying off your debt.

What payments can you make and when? And what can you say to convince them you are genuine?

Can you, for example, tell them about your job so they are confident that you have regular, reliable income which will enable you to pay them back? Can you agree a repayment schedule with them, even if the first payment isn’t for a few weeks until you get paid? Can you even set up an agreement with your creditor and your bank that they will be paid automatically every payday without you or them having to do anything?

If it’s going to be months until you can afford to pay a penny then you’re unlikely to get much sympathy. But if you only need a few weeks grace until you can make a payment – no matter how small – then explaining the situation and expressing how serious you are about paying them back in full will normally go a long way towards taking the pressure off you and allowing you to live a normal life until you can start to make your debt repayments.

photo credit: KitAy

One of the standard expenses that we can’t get away from each month is that of buying food and drink. We can end our cell phone contract or take the bus to work rather than running a car but none of us can avoid the need to eat.

Therefore a useful way to reduce our monthly expenses enabling us to pay off debt sooner is to find ways to spend less on our grocery shopping. Fortunately whilst some people spend huge amounts of money on grocery shopping, for those looking for debt assistance there are a huge number of ways to save money.

Cut Coupons

Many retailers and manufacturers offer discount coupons and vouchers which can be redeemed when you do your grocery shopping thus bringing down the costs. Keep your eyes open for these coupons or even consider checking some of the online coupon sites for information on what savings are available where.

Shop Around

Whilst doing all your grocery shopping in one supermarket makes life easier, not all supermarkets charge the same prices. Therefore feel free to consult the websites of your local supermarkets to see if you can split up your shopping between two or more stores and save money as a result.

Cook From First Principles

Buying prepared frozen foods and ready-meals is a surprisingly expensive way to buy food. Retailers call these “value added foods” because they are designed to save you time and effort, and as a result these retailers can charge more for them.

By giving up on buying prepared meals and instead baking your own bread, making your own pizzas, creating your own pasta sauces and more you can not only have fun, learn some new skills and save a huge amount of money into the bargain.

Take A Brown Bag Lunch

In a similar vein, rather than relying on overpriced premade sandwiches and drinks, save money by taking your own sandwiches into work together with some fruit and a drink. You’d be astonished how much money this can save over the course of a month.

Buy In Bulk

Retailers want you to spend more. So they typically charge you less proportionately when you buy larger containers than smaller. Buying rice in huge bags is cheaper than buying tiny bags. Buying a sack of potatoes is cheaper than buying numerous small bags. So consider spending a little money each month to buy in bulk and watch how much money you save as a result.

Grow Your Own Food

It is both easy and enjoyable to grow your own fruits and vegetables and doing so will save you plenty of money which can go towards your debt repayment plan.

Keep An Eye On Dates

Food does go out of date and of course food which goes out of date can’t be eaten and must be thrown away. You might as well throw out your money and astonishingly research suggests that 25-30% of the food we buy goes out of date and is thrown away.

So get yourself a calendar or a diary and when you do your grocery shopping write down what goes out of date when so that you can eat your food in order and waste as little as possible.

photo credit: Lin Pernille ♥ Photography

If you want to get out of debt as quickly as possible (and let’s be honest, who doesn’t?!) then a topic worthy of consideration is that of interest payments on the money you owe. The higher the interest rate you are paying, the longer it will take you to pay off your debt and the more money it will take.

Luckily though there are a number of ways in which you can reduce your interest payments if you know what you’re doing which can make paying off your debt far easier.

Negotiate With Your Creditors

If your debts are in good standing then you may have some leeway with your existing creditors. A quick phone call to them with a request to reduce your interest rate may be met with some success if your creditors can clearly see you have been keeping up with your payments and are a reliable borrower.

However if I’m totally honest with you this really isn’t in the best interests of your creditors. After all, why would they consider accepting less money from you than they could actually get?

And there is one reason that can really hold out. And that is debt flipping.

Flip Your Debt

If you have a high interest rate on a debt, as is often found with credit card debt, it can be a smart move to consider taking out a lower interest loan and using this to pay off your higher interest debts. In this way you will be able to pay off your debt faster.

Some credit cards also offer a 0% interest deal for a period of time and so taking out one of these cards and then transferring credit card debt from higher interest cards onto the new interest-free card can be another quick and easy way to reduce your interest payments and pay off your debts faster.

Sometimes when calling creditors about reducing or even halting your interest payments for a period of time, explaining that you are considering doing this can be enough to convince your existing creditors to help you. While flipping your debt can be helpful, it also requires some effort. And so ringing your existing creditors and explaining that you are considering such a thing can really motivate them to look at your interest payments. After all, the longer you stay with them, the more money they will make from you.

Consolidate Your Debt

You need to be careful with debt consolidation and ensure you fully understand exactly what you’re getting yourself into before signing any agreements but again rolling all your high-interest debts up into one low-interest debt consolidation loan can make sense for some people and allow them to focus on just paying off one manageable debt rather than dozens of debts that only seem to grow each month no matter how much money you pay into them.

photo credit: JOE MARINARO

The less money you spend each month, the more you will have left over for debt repayments so it follows that if you’re serious about wanting debt assistance, you will take the time to do a complete audit of your monthly outgoings.

Whilst it can be dull, a smart way to get started is to start a journal to record your outgoings. Every time you spend any money – send a check, buy something in a store, whatever – you jot it down in your journal.

Keep a detailed record in the hope that you can not only find obvious ways to reduce your outgoings but to also find what one author has called the “Latte Factor”.

The Latte Factor is a fantastic concept and one that I have mentioned to a lot of people over the years who often get a great big “aha” moment when they hear it. The Latte Factor looks at the small, pointless sums of money we spend each day.

If you were going to buy a wide screen TV for $500 or more you’d probably think twice before buying it. But when it comes to speding a few dollars on a posh coffee, or even 50c on a daily newspaper, such small sums typically don’t worry us. What harm can a few dollars do?

And yet, added up over the month, all these little spends can add up into one big sum of money. Working out what your Latte Factor is, so you can knock it on the head can make a massive difference to the amount of cash you have left at the end of each month.

Once you have put a budget in place, showing your monthly expenses, there are a host of ways to potentially reduce your spending – often by a surprising amount. Here are a few suggestions to give you some food for thought…

Cell Phone

Many of us spend huge amounts on out cell phones each month, often on a contract so we don’t even realize exactly what we’re paying until we’ve already made the calls.

Consider firstly whether your cell phone is a necessity or really more of a luxury for you. Do you *really* need it?

If you do, then there are three further considerations.

Firstly, can you use your phone less without compromising your lifestyle? If so, you may well be able to spend less on your phone each month.

Secondly, could you swap from a contract to a prepaid phone enabling you to control your costs more simply? When you put $20 credit on your phone, you can’t overspend because when you get to the end of that credit your phone will simply stop working until you top it up again. No long conversations now – you’ll be thinking more about when your phone runs out.

Finally, and this sounds counter intuitive, could you upgrade to a more expensive contract? Hang on, I hear you say, aren’t we meant to be saving money here? As someone who has worked in the cell phone industry in the past I can tell you that quite often consumers put themselves on a low tariff. And then often go over it and end up paying additional fees ontop of their contract each month.

If you are one of these cases then one can often save money by upgrading to a tariff that costs more but offers you far more minutes or talk time and texts, which will actually save you from paying those “topup” fees and can actually work out considerably cheaper over the long run.

To be certain, grab your last 3 or 4 cell phone bills, work out your average number of calls and texts per month and compare this with the cell phone plans offered by your provider to see if upgrading to the next package could actually save you money.

Utilities

Utilities – electricity, gas, water and so on – are competitive markets with many big companies trying to fight each other for market dominance. This competition means that you may be able to get a cheaper deal elsewhere if you fully investigate it.

Could you, for example, roll your gas and electricity up into one tariff to save money? Could you combine your phone and internet to save money? Could you move your electricity to a different supplier and save money?

There are numerous websites who will help you figure out the cheapest tariffs for you and hundreds of dollars can easily be saved by making a few phone calls to switch suppliers.

At the other end of the scale, try to use less of each of your utilities unless you are on an unlimited plan. Save water by turning your forcet off when brushing your teeth. Collect rain water to water the garden. Take showers instead of baths. Switch off electrical goods when you’re not using them rather than leaving them on standby. And so on. Many of us are naturally wasteful and a little intelligent thinking can quickly slash your utility bills by a surprising amount.

Sustenance

According to statistics, around a third of all the food we buy ends up in the bin because we cooked more than we needed, or it went out of date.

Reducing your wastage can be easy by simply keeping a careful eye on sell-by dates so that you eat everything in order.

In addition, there are a range of frugal cookbooks available to help you create nutritious, delicious meals without breaking the bank. Could you give up some of your meat each week, for example, and replace this expensive luxury with equally delicious vegetarian meals which tend to work out far cheaper?

Lastly, consider *where* you’re buying your food. High street convenience stores are often far more expensive than out of town supermarkets where bargains are aplenty. And when it comes to half price deal,s buy on get one frees, 50% free deals and so on, how much fo your weekly food intake could you derive from these sale items rather than just buying whatever you want each week?

Again, huge savings can be made when buying food and drink if you’re willing to put your mind to it.

Transport

Many of us own a car to get around – it’s an essential part of everyday life. But it’s also so convenient that it can be tempting to drive everywhere.

Are there places you go do where you could walk or cycle? Often there are, as reports show that over 50% of our car journeys are less than 2 miles in distance.

Also, consider looking into changing your insurance provider to see if you can get a better deal, and also considering public transport from time to time. Not only can trains or buses get you to your destination just as quickly as going in a car, but you have no worries about finding, and then paying for, parking when you get to your destination.

All of the above are of course only a few suggestions. Once you have seen where you’re spending your money, take the time to consider each and every expense to see where cuts can be made. I don’t want you to give up all your fun, or this process will quickly stop working for you, but if there are easy, painless ways for you to cut your spending, then why not do it, and pay off your debt faster?

photo credit: left-hand

We all have a certain quality of life that we enjoy. We like to go to the gym. Or have dinner out once in a while. Most of us go on vacation at least once a year. And we like our homes to be comfortable and welcoming.

All of this, of course, involves spending money. And equally the more money we spend, the less we have available to pay off our debts.

So one obvious solution when seeking debt assistance is quite simply to spend less (or earn more) so that we have more cash left at the end of the month to pay the bills with.

But there’s a problem here.

Cutting our spending can mean missing out on some of those luxuries we have all learned to love. Going on a money diet is much like going on a normal diet where you give up donuts, chips and beer. You know you’ll be better off long term, but it can be easy to fall off the treadmill when you see all the stuff you love that you’re missing out on. And it’s even worse if your friends aren’t doing the same.

But saving money, like losing weight, is really a seesaw. You have less of one thing and more of the other. The key secret is to not look at what you’re missing out on – like some of your monthly luxuries – but to instead concentrate on what you’re gaining.

You’re essentially buying back your freedom. You’re paying off debts that have been controlling you, limiting what you can do, even causing you sleepless nights. And this is only a temporary solution. Once your debts are under control not only can you sleep easy, but with less (or no) debt repayments to make after you get your problem sorted out, you’ll actually have even more cash to spend on yourself once you come out the other side.

So whilst you might miss your dinners out, you can set yourself targets and goals to keep you motivated on this journey. You could arrange to go out to dinner and enjoy yourself once you’ve paid off a certain amount of your debt, for example. To set yourself something that will keep you moving in the right direction.

And you can set the biggest goal of all for when you have your debt sorted. Maybe plan a fantastic vacation for the month you finally manage to pay off all your debt so you can celebrate your freedom. Just don’t pay for it on your credit card

These little treats from time to time are important, just as they are with weight loss. This is why many modern diets give you a “free day” each week, or “cheat points” so you can still have a little fun, but manage to lose weight over the long term.

And getting your debt resolved is really just the same. Limit your spending, but plan a few treats along the way to keep you going. And remember, focus on what you’re gaining, not what you’re missing out on.

Paying off debt doesn’t have to be boring or unpleasant. You just need to put a plan in place that is realistic and then stick to it. You’ll be glad you did when you come out the other side.

 
photo credit: Design Packaging

Typically when we think of consumer debt, we’re talking about topics like credit card debt, outstanding loans, maybe some hire purchase for a car or a bank overdraft.

Maybe you only have one debt to pay off, maybe you have dozens of different accounts that you’d like to pay off. The process is really very similar no matter how many you have.

Infact, some debt assistance experts surprisingly claim that actually the more different accounts you have the better because it gives you more options, more choices and more to work with when it comes to making some smart moves to reduce your debt.

When it comes to intelligently paying off consumer debt there are a few tips that can be very helpful indeed.

The first debt assistance tip for you is to pay a lot of attention to your interest rates. The debts you have that receive the highest interest rates will typically take much longer to pay off – and will cost you more – than those with lower interest rates.

The reason is simple of course. If you have a $1000 debt on a credit card that charges 25% interest then at the end of the year you’d owe $1250. If it was only a 10% you’d only owe $1100.

So the higher the interest rate, the more time it will take you to get rid of that debt because so much of your monthly payments will go on paying off the interest itself rather than actually paying down the money you spent.

It is therefore wise to prioritize to pay off your debts with the highest interest rates first, and over time work your way through them from the highest to the lowest.

Of course another element of this is to try and lower your interest rates wherever possible and there are a variety of ways that this can be done.

One example is as simple as ringing up your creditor and asking them to stop, or at worst reduce, your interest rate. It sounds crazy but you’d be surprised how often it works.

Another idea would be to take out a low-interest loan or credit card, and use it to pay off some of your higher-interest debt. Some might argue you still have the same debt, just with a different lender, but the lower interest payments will enable you to pay off your debt far faster.

The next debt assistance tip for paying off consumer debt is of course to pay it off as quickly as possible. The more time you take to pay off your debt, the more you will pay overall thanks to interest payments no matter how low they may be.

So the smart individual will aim to pay off more than their monthly minimum if at all possible. Essentially whilst you’ll likely be very tight on money for a while, paying off more than you have to will not only often help your credit rating but will ensure you pay as little interest as possible.

So whether you consider getting an extra part time job, reducing your monthly expenses such as eating in rather than going out or going for a jog rather than getting an expensive gym membership, try to have some extra cash to hand each month so you can really make a dent in your consumer debt.

photo credit: AMagill

When it comes to debt assistance clearly it can be tremendously helpful if you can succeed in increasing your monthly income. For obvious reasons the more money you earn, the more money you will have to pay off your debts.

Not only will you be able to pay off more than the monthly minimum payments on your debt but you will be able to pay it off much faster and with far fewer interest payments. You might even be able to afford a few treats along the way so that paying off your debt doesn’t have to be quite as painful as you may first imagine!

So lets take some time looking at seven realistic ways in which you can increase your monthly income. You may want to implement just one of these techniques or even a whole host of them. It really is up to you what you think you could manage and how much debt you have to pay off right now.

Ask For A Pay Raise

This one sounds crazy, I know. Just ask for a pay raise? Is that really likely?

The fact is that until you ask, you’ll never know. Over the years of working for a number of companies you’d be amazed at how many pay rises I have seen offered to various people for various reasons.

Now sure, a promotion often comes with a payrise, so that’s certainly worth considering, but many companies will really only pay what they have to keep you there. And if you put across a good argument, many are able to increase your pay which will certainly assistant you in paying off your debt.

The key really is to be polite, friendly and confident. Don’t go in looking for an argument. Don’t *demand* a pay rise. Simply ask your boss when they are available to spend a few minutes with you.

Then when the time arrives, explain that you’d like to discuss the possibilities of a pay rise. Explain *why* you deserve it – whether that’s because you’ve been with the company for so long, maybe you’ve taken on extra responsibility or whatever.

Be a sales person. Explain the benefits. Perhaps even suggest if your boss doesn’t look hopeful if there is anything else you can do to get a pay rise. Are there any extra responsibilities you can take on that would encourage a payrise?

Finally, be patient. Very few bosses can and do make you an offer on the spot. Most will need to look at their budget, or speak to their superior. So make your case and then let them get on with seeing what they can do for you.

Get An Extra Job

Yeah, I know. This idea kinda sucks. But stick with me for a moment.

You probably already have a main job that you’re using to pay your monthly bills. You’re tired at the end of the day. You’re stressed. You don’t see enough of your family and friends.

But being in serious debt has it’s downsides too, you know.

If you’re struggling to pay off debt, you might not have the money to go out with your friends, or to do up the garden or whatever else you’d *like* to be doing.

Remember that an extra job will not only enable you to earn more money, but will also limit the amount of money you spend unnecessarily because you’ll be working more rather than going out and enjoying yourself.

And of course an evening or weekend job to supplement your income doesn’t have to be permanent. You can aim to work just a few months to really get your debt under control before reverting back to your normal life.

Get A New Job

If your boss won’t give you a pay rise, and you don’t like the sound of a second job, is it time to consider getting a newer, better paid job? This was one of the things I did. I actually hard to work a few more hours each week but I managed to find a job that offered significantly more money for essentially doing the same thing.

Not only was I earning more but I also made new friends and found I actually really enjoyed the new company far more, while still keeping in contact with old friends and work colleagues.

So not only did I earn more, but I also had more fun.

Sell Some Belongings

All of us have some material possessions we could get rid of. I bet if you take a weekend to go through all your cupboards and drawers, check in the garage and the loft you’ll be amazed at all the old stuff you own but don’t need. You’ve probably got stuff you haven’t used in so long that you’ve forgotten you even own it!

So why not take some time to sort out all these belongings. You’ll free up space in your house and you can then sell the excess stuff on eBay, or by having a yard sale or even taking some items to a local auction house.

Doing such a thing can quickly bring in considerable extra income. Indeed, when I first tried it two years ago, I basically managed to double my salary for a few months as I sold things I didn’t want anymore on eBay. I’d spend just a few hours each week posting things off and keeping an eye on my auctions and easily made several thousand dollars in that time.

Freelance

Did you know that there are thousands of people just like you who make some money in their spare time by doing freelance work?

I’m not talking about anything too technical here. No web design qualifications needed or anything. One example of the type of freelance work which you can easily find is article writing.

You may not know that many big websites now pay people just like you and me to write the actual articles they put on their websites. And with so many websites out there doing this, there are bound to be some companies looking for articles on topics that interest you.

For example I have been paid to write articles on topics such as Mexican vacation destinations, European history and pet care. All these are things I’m interested in or have some experience of. I have some books on the subject and so was able to quickly write these articles and earn some cash.

All of these jobs can be found, and completed online, and done in your free time in the comfort of your own home.

Start A Small Business

There are numerous small businesses that can be started in one’s spare time. From offering gardening services in your local area to dog walking, baby sitting and more. All require virtually no investment, just the willingness to print up some fliers and distribute them locally. So why not take the time if the idea of freelancing doesn’t appeal to consider what small business you might be able to run in your spare time.

The Sky Is The Limit

These are of course only a few of possibilities and it would be impossible to list every single one of them. Why not put aside a few hours this weekend to put pen to paper and consider possibilities for how you can increase your income using the ideas in this article as a starting point?

photo credit: Tracy O

When you start falling into debt, the figures can start to get scary. As the numbers get higher and higher thanks to interest rates and late payment fees it can be easy to start ignoring them. The numbers are simply too high to consider and the possibilities of paying off those sums seem near impossible.

But of course with the right information they’re not.

The first step if you’re looking for debt assistance is to get a handle on what you really owe, and to whom. Just as importantly, which of your debts are up to date, and which ones (if any) are you currently late on?

So put aside as much time as you need – maybe an evening, maybe a whole day. Grab a notepad and pen, plus all the letters from your creditors and jump in.

Work out what you owe to whom, what the interest rates are that you’re paying to each creditor and also what the monthly payments due are.

Once you know this essentially information you will be in a far better position to actually put a plan in place as to how you’re going to dig yourself out of that debt. After all, if you don’t know the basic figures, how are you really going to get any useful debt assistance help?