Are you looking for solutions to reducing your personal or business debt? The current economic climate has many individuals and business owners looking for ways to reduce the huge interest payments and high rates that is charged on their debt. You may be looking at several options including debt reduction services
Following are 3 things you need to know about debt reduction solutions
Because of the costs involved in professional services the first thing you want to look at to reduce debt is to look at your current assets and see if there are ways to consolidate resources and sell of unnecessary items. These assets could be jewelry, antiques, extra vehicles, rental properties, electronic equipment. Look around your home or business and see if there are items you could sell locally through craigslist, yard sale, the newspaper or globally using ebay or other web sites.
Remember that anything you can do to reduce the principal also reduces the amount of interest you pay and the length of time necessary to pay off any credit balances. Selling off extra assets is like free money.
Once you’ve used existing assets to reduce as much debt as possible you still may be faced with an overwhelming debt load. Debt reduction services are provided to individuals or businesses whose debt has gotten out of control. Unfortunately, there are a number of debt reduction services that are out to take advantage of individuals in a vulnerable situation. Make sure you understand exactly what a service is providing before you go forward or sign any paperwork. Some companies actually charge monthly for a service that they only provide during the initial consultation phase.
One newer development is actually provided by software designed to help you analyze your current situation and provide several different options.
What do debt reduction services actually do?
Organizations that provide debt reduction services for their clients typically take your existing creditors and negotiate for lower interest rates and often reduced principal amounts in order to lower your monthly payments, eliminate late fees and over limit fees. This allows you to pay a larger amount toward the principal amount and pay off your debts at a much faster rate.
Believe it or not, these services can often reduce the actual debt by as much as 40%-60%. This can make a significant difference in both your ability to pay off the debt and also the time needed to do so.
Use a debt reduction calculator
Debt reduction calculators are typically based off of a simple spreadsheet model and the savvy consumer or business owner can use them to manage your debt. With a few mouse clicks and some data entry you can quickly get an overview of your current situation, set up a budget, see what would happen with reduced interest rates and also reduced principal amounts.
Are you struggling to make your income stretch to meet the needs of your expenses and debt load? It may be time to look at the debt reduction solutions available.