You've generated an awful lot of debts over the Christmas period. You've had a great time buying the kids presents and other gifts for the rest of the family. Christmas lunch was a success - everyone said so, all 23 of them! It's nearly February and you still haven't done much about paying the bills and sorting out the credit card which is up to the limit. Of course, money is tight, again. You need to do something fast to clear your debts, so how do you go about?
You could arrange with your creditors to settle your debts which mean you undertake to pay a reduced amount or to formalise a structured payment plan. It does mean, however, that the settlement causes a notation on your credit file for a number of years and you could find it a problem to obtain credit at an acceptable interest rate later. You could also arrange for a personal debt consolidation loan through a bank. This will free up more money for you by paying only one loan per month. If you want to take some simple actions yourself, you must have a plan and stick to it. Here are a few simple things that can do for your self.
The way most people solve this dilemma is to reassess their budget and see where savings can be made. They often adopt a financial plan and with discipline, pay off their debts. If you are unsure how to go about this, you could see a financial advisor who will devise a financial plan to suit your circumstances. You could also contact your creditors to negotiate a more manageable payment plan.
Have a look and see if you and/or your spouse can generate extra income through a part time job or even a second job. Sell something in the local classifieds or on auction sites like eBay. Trade in your gas guzzling car for a smaller, more economical model. Consider getting rid of your car all together and use public transport or a bicycle. Contact each of your creditors and let them know your situation and negotiate regular payments, albeit at a reduced amount, temporarily.
Stick to the plan and you should see an improvement in your finances over a relatively short period of time. If all else fails, apply for a debt consolidation loan through your bank. This will reduce your overall monthly payments and leave only one loan to worry about.
You could arrange with your creditors to settle your debts which mean you undertake to pay a reduced amount or to formalise a structured payment plan. It does mean, however, that the settlement causes a notation on your credit file for a number of years and you could find it a problem to obtain credit at an acceptable interest rate later. You could also arrange for a personal debt consolidation loan through a bank. This will free up more money for you by paying only one loan per month. If you want to take some simple actions yourself, you must have a plan and stick to it. Here are a few simple things that can do for your self.
The way most people solve this dilemma is to reassess their budget and see where savings can be made. They often adopt a financial plan and with discipline, pay off their debts. If you are unsure how to go about this, you could see a financial advisor who will devise a financial plan to suit your circumstances. You could also contact your creditors to negotiate a more manageable payment plan.
Have a look and see if you and/or your spouse can generate extra income through a part time job or even a second job. Sell something in the local classifieds or on auction sites like eBay. Trade in your gas guzzling car for a smaller, more economical model. Consider getting rid of your car all together and use public transport or a bicycle. Contact each of your creditors and let them know your situation and negotiate regular payments, albeit at a reduced amount, temporarily.
Stick to the plan and you should see an improvement in your finances over a relatively short period of time. If all else fails, apply for a debt consolidation loan through your bank. This will reduce your overall monthly payments and leave only one loan to worry about.
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