(Newswire.net — March 20, 2018) — Debt has a way of sneaking up on you. One day you got a credit card offer with a sizable limit and you told yourself you’d take it—just in case. Eventually, you saw something you wanted and thought—why not? One thing led to the next and before you knew it the card was at its limit. Then, you got another offer with a larger limit and an invitation to move your existing balance onto the new card. Before long, both cards were at the limit and you were wondering how to achieve freedom from your debt. Well, there are a number of ways to accomplish it, but they all require planning and some soul searching.
1. Identify the Root Cause
The scenario above is all too common. Don’t feel bad if it happened to you. Lots of people fall into the balance transfer trap. Some people actually fall into it several times. Or maybe it was something out of your control like an accident or medical bills. If that’s the case, it means you didn’t have enough savings to cover you in an emergency. Whatever it was that got you here, it’s important to look it in the face so you’ll recognize it the next time it shows up.
2. Calculate Your Total Debt
Seeing just how big the number really is can be scary. However, once you know what you’re dealing with you can formulate a plan to put it in check. While you’re at it, do what you can to stop additional debt from accruing. The more you charge, the deeper the hole will get. The deeper the hole becomes, the more effort you’ll need to climb out.
3. How Much Can You Pay?
Once you determine how you got here and how much it’s going to take to get out, you’ll need to figure out what your budget will allow you to do. This will have a significant bearing upon your choice of strategies. If you have enough room to cover everything, perhaps a debt consolidation loan will be your best move. If it works, don’t start charging again once the consolidated debts are paid. You’ll still need to cover the loan.
4. Choose a Debt Relief Program
If consolidation is off the table, your next best bets are credit counseling, debt management, debt settlement or filing for bankruptcy protection. Each has its advantages and disadvantages. The determining factors are typically driven by what you can afford to pay and what you are willing to sacrifice. Bear in mind, some of these choices will damage your credit score, even as they erase your obligations. If you choose debt settlement, look for a company that offers expert advice like Freedom Debt Relief.
5. Stick to The Payment Schedule
Whichever route you take, you’ll commit to a certain interval between payments. Adhere to it religiously and do not miss a payment. Doing so could invalidate the agreements you have in place and set you back beyond square one. When you choose a plan, stay with it until you see it all the way through. This is the fastest and most reliable way to retire your debt.
6. Eliminate the Habits That Got You Here
Identifying the root cause of your situation stands you in good stead when it comes to correcting the mistake you made. If it was falling for credit card offers, tear them up as soon as they arrive and throw them out. If it was an unforeseen circumstance like an accident or a medical issue, start establishing an emergency fund as soon as possible. That way, if it happens again, you’ll be able to cover it with cash rather than taking out a loan. After all, this could find you once again needing to figure out how to achieve freedom from your debt.