Debt is an understandably big concern for many people. A survey by the American psychological association found that in the US, 73% are worried about money; 64% seriously.
You shouldn’t need to worry; it is, after all, just money. When debt seems to be collapsing on top of you, there are plenty of options for rectifying it.
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Relief Solutions
A common solution to your debt issues is to enter into a debt relief solution. The Federal Trade Commission recommend them. Their advice is worthwhile, however; preach caution, and use reputable third-party services. AAA Credit Guide (https://www.crediful.com/debt-relief/national-debt-relief/) emphasize that there are, indeed, legal frameworks to protect consumers, and that after an initial storm you will be able to relax into regular payments and a solid schedule.
Debt Settlement
If you’re able to find a reputable company with real results, debt settlement programs can potentially be a good option. The issue here is you are likely to end up paying a retainer and spending money that could have paid down your debt; the upshot is, if successful, you’ll be able to reduce your debt massively. Laws are now in force to reinforce your rights; companies can no longer charge you a fee until they’ve negotiated said reduction with your creditors.
Self Management
Likely the toughest, but most gratifying manner of debt reduction is self-administering your problems. Two key methods have become popularized in this arena – the snowball, where you work off the smallest debts first to give a psychological ‘win’; and the avalanche, where the highest interest debts go first, which is the most logical and will save you money in the long term.
Research from Boston School of Business has shown it’s most effective to snowball, though this is no way a hard and fast rule. Work out which method is best for you – of course, if you’re the logical type and can keep the big payments rolling, that’s best.
Minimum Payments
Whatever your chosen method, try and keep off the minimum payments. Notorious for keeping people in the debt trap, it’s estimated that the average American credit card holder, with $15,000 of debt, will take 11 years to pay off their balance.
Whatever the method you choose, debt management need not be bleak. There are plenty of options out there besides those above, and a little digging will get you far. And even if you can’t swallow handing your problems to a third-party, science shows you can even do it yourself.
