| Many of us are more concerned about credit | | | | |
| than debt. That's because the majority of us | | | | 6. Consider re-financing your home if |
| have a relatively easy time getting credit. | | | | interest rates are in your favor and it makes |
| In the mail, we are bombarded with | | | | financial sense. |
| pre-approved credit card applications and | | | | |
| most of us carry around a fistful of cards. | | | | 7. Beware of debt-consolidation loans. In |
| This causes the mentality of being able to | | | | theory, the loan sounds appealing; a lender |
| think we can buy as opposed to what we owe. | | | | agrees to pay off all of your bills by making |
| | | | you one big loan. The lender handles all the |
| Here are some steps to consider alleviating | | | | creditors and you make only one monthly |
| debt problems: | | | | payment to the lender. |
| | | | |
| | | | 8. Don't hide from your creditors. Let them |
| | | | know you are having financial problems and |
| 1. Face the problem. Until you admit you have | | | | express a sincere desire and commitment to |
| a problem, you are not prepared to fix it. | | | | pay your bills. In most cases, a creditor |
| | | | will be flexible and work with you to design |
| 2. Make a plan. Review the last six months of | | | | a repayment plan that you can meet. |
| your spending habits to figure out just where | | | | |
| your money goes. How much money comes in each | | | | 9. If necessary, seek professional advice. |
| month and what do you need to pay off debts? | | | | There are nonprofit counseling offices across |
| | | | the country that offer assistance to people |
| 3. Curb spending habits. Find ways to reduce | | | | who are having debt problems. To locate a |
| spending, and make no new major purchases. | | | | counseling center near you, contact: The |
| Stop using credit cards. If you can't bear to | | | | National Foundation for Consumer Credit. |
| cut them up, tuck them away in a safe deposit | | | | |
| box. | | | | 10. Pay more than the minimum for credit card |
| | | | bills. You will have to make a few sacrifices |
| 4. Consider using your savings, if you have | | | | for this (giving up a few luxuries), but the |
| any, to pay off certain debts. If your | | | | increased payments will save you hundreds or |
| savings account is paying 5 percent interest | | | | thousands in interest payments. |
| and you are paying 20 percent interests on | | | | |
| your credit card, you are getting way behind. | | | | 11. As a last resort, you can file for |
| | | | bankruptcy. Your credit record will hold this |
| 5. Can you increase your income? Maybe you | | | | for ten years which might make it impossible |
| can put in extra hours at work or get a | | | | for you to obtain credit even if you can |
| part-time job during the weekends. Do you | | | | afford it. Do a thorough research on |
| have any assets you can sell? Extra | | | | bankruptcy and find out if it's the best |
| furniture, a car you really don't need? If | | | | option for you, what it entails and its end |
| you have a lot of personal belongings you can | | | | results. |
| part with, you might hold a garage sale. | | | | |