Get Started On Organizing Your Debt
It is certainly easier to get into debt than it is to get out of debt. However, while it may seem difficult at first and you are drowning in debt, there are steps you can take to getting out of debt. As with most things in life that seem hard, getting started is often the most challenging thing to do and you may feel like you are drowning in debt. That is why by using this systematic approach, you can break through the initial barrier of reluctance and have a decent understanding of what you owe and what you are going to have to pay back.
Evaluate the problem:
The first step for anyone in debt should be evaluating your problem. If you are interested in getting rid of your debt without having to file for bankruptcy, you most look at your financial status, come up with a plan that is going to be effective, and start taking steps to getting rid of your debt. Getting rid of debt takes a large commitment, one that you are going to have to follow through on until you are out of debt. This first evaluation process helps you determine just how much debt you have, this means being honest with yourself and considering everything that you owe and what caused you to start drowning in debt in the first place.
You can do so in three simple steps.
- Step 1 – Request a credit report
There is a good chance that you know whom you owe money to. However, in order to get a clear picture of your complete financial status, you need to request these credit reports. Every year you are eligible to request a free credit report. There are three major credit-reporting agencies that you will have to contact in order to have a complete overview.
- Step 2 – Verify the debt you have
Once you have your credit report(s), make sure that you go through all of the information listed on each credit report. It is important that you go through this very thoroughly to ensure you do not miss anything. People make mistakes, so you want to ensure that everything listed on a credit report is valid. This includes dates of last payments, names of creditors, and balances due. If you find that some of the information on a credit report is incorrect, you need to send a letter to the credit-reporting agency to update the information.
- Step 3 – List your debt
While you will see all the debt listed on your credit report, it is important to realize that it may be in your best interest to pay certain debts before you start paying off other debt. Say you have a credit card balance of $500 on one card and $250 on another card, it may seem natural to want to pay the $500 balance first. However, if the interest rate on the $250 card is twice as high as on the other card, it makes sense to pay off the $250 card first. Make sure that you carefully look at all the late payment charges and fees before you make a decision.
Now You Are No Longer Drowning In Debt
Once you have taken these steps or called PCS Debt Relief to help you understand all your options concerning your debt obligations, you may feel able to breathe again. Once you have your debt under control it will feel like a weight lifted off of your shoulders. PCS Debt Relief can carry the burden of debt while you focus on whats more important to you like family or business.