You Know What You Owe… (and You’re Scared) Now What?

Step 2: Get Your Stuff Together

So you have those scary figures in front of you. Now it’s time to get to work. You need to break your debt down into affordable monthly payments while at the same time, STOP USING CREDIT. Debt elimination is what 100% of your extra income is going to go to.

If you are in SERIOUS financial trouble, as in “I’m about to declare bankruptcy,” trouble, you need to do two things fast, BEFORE you begin bankruptcy procedures. First, look up and make an appointment with a financial adviser. Your bank may have people on staff who can help you.

If you can make an arrangement with your bank to pay off your debtors by giving you a fixed-term, equal payment, low-interest loan, you can simplify your debt elimination from the beginning. As long as you make that one payment on time each month, you could be debt-free and rebuilding your credit in as little as three years.

I know, three years is a long time; but if you don’t start now, it could be thousands of dollars worse and you’ll have slid even further backwards financially.

If your bank or a financial adviser is not available to you, it’s still possible to eliminate that debt on your own.