Are you struggling to pay your bills? Is your house getting foreclosed, or are you getting constant notices from debt collectors? If you’re facing any of the aforementioned situations, know that you are not alone. Many people experience financial challenges at some point in their lives and struggle to find a path to get back on their feet.
Debt relief can be a useful approach, but can you do debt relief yourself?
Negotiating a debt settlement on your own is not easy, but it can save you time and money compared to hiring a debt settlement company. With a do-it-yourself debt settlement plan, you negotiate directly with your creditors to settle your debt for less than you originally owed.
Here is a simple DIY guide you could use to create and implement your credit card relief program.
Develop a Budget
The first crucial step of creating a credit card relief program is creating a list of all your debts. These debts could include student loans, credit cards, medical bills, and personal loans.
Once you know your total debt, proceed to list all your sources of income and fixed and varying expenses. It allows you to track your spending and prioritize buying the necessary items to save more money.
Create a Plan
There are two methods of paying off your debts: debt avalanche and debt snowball methods. The avalanche method involves paying your debts from the highest to the lowest interest. The snowball method entails clearing your debts, starting with the lowest-interest one to one with the highest interest.
Whichever method you select, you will want to make minimum payments on all your debts to avoid a negative credit score. Prioritize paying your debts from the most important to the least and always focus on eliminating one debt at a time.
Negotiate The Interest Rates
It is impossible to do away with your debts automatically, but you can find some good ways to minimize fees and interest rates at https://www.freedomdebtrelief.com.
A significant part of the DIY credit card relief program is calling the company and negotiating the interest rates best for you.
Don’t Accumulate More Debts
If possible, freeze or close your credit card accounts when paying off your current debts. It’s easier to clear your debts if you are not accumulating more. However, closing your credit card may give you a negative credit score. If you are not ready to take the risk, several credit cards now have the “freeze” option, where you can momentarily stop using them without any penalties.
Cut Down Expenses
It will be necessary to reduce your expenses and only focus on the basics to pay your debts quickly. This will ensure that more money goes into paying your debt.
The best solution to minimize expenses would be putting away your credit cards to avoid overspending. The traditional credit card relief program requires you to stop using your credit cards for good. Incorporate the same strategy into your DIY program, and the results will be reduced expenses. Also, refrain from getting new credit cards or debts.
As you pay off debts, it’s important to have a spreadsheet to keep tabs on your debts and record the progress. You will also need to check your credit card report to confirm any irregularities concerning your personal information, debts, and payment history. You can check your credit report for free once a year with credit score agencies.
Can you do debt relief yourself? Yes, you can. If followed correctly, the steps discussed above will enable you to clear your debts in no time through your self-made credit card relief program.
However, working with a reputable debt relief company will speed up the debt payment process and make the work much easier for you. Contact Freedom Debt Relief today in case you need the help of a professional.