The Debt Elimination Process
Are you struggling with multiple debts? Do you feel like you are drowning in a sea of debt, with no way out? Then perhaps you should consider debt elimination. The debt elimination process, which may seem intimidating at first glance, is actually quite straight forward. Debt elimination can help you save money each month, pay less interest, pay yourself out of debt more quickly, and help you to put an end to fears of bankruptcy. Moreover, by going through the debt elimination process, you can stop those pesky bill collectors in their tracks before they make one more phone call to your workplace or home. Let’s take a look at how debt elimination works.
Getting Started With The Debt Elimination Process
Before getting started on the debt elimination process, you should get a good idea of who you owe, and how much you owe to each creditor. This might be easiest to achieve by pulling your own copy of your credit report. You can get one copy of your credit report, free, from each of the three major credit reporting bureaus in the U.S., including Experian, Equifax, and Trans Union. You can include both current and past due accounts in the debt elimination process. It is a good idea to include all of your unsecured debts in one large debt consolidation so that you have everyone paid off at once.
Getting a Quote
The next step in the debt elimination process is to contact the debt consolidation or credit consolidation company of your choice to request a quote. The consolidation company can show you how you can save with them, and how much you can save, based on different scenarios. Consolidation companies can show you how debt consolidation makes sense because they can work with your lenders to:
- Reduce the debt you owe. This is oftentimes possible, especially if your debt has been sold to another collection agency. Many times, debt that is old is sold off to collection agencies for pennies on the dollar, who in turn try to collect from you. Your consolidation company may be able to settle some of your debts for pennies on the dollar.
- Reduce the amount of interest you are charged. Oftentimes, your debt consolidation company, during the debt elimination process, is able to work with your lenders and creditors to devise better terms for your debt consolidation. This can result in your interest rates being slashed by up to fifty percent. This means that your debt will end up costing you less.
- Reduce your monthly payment total. Chances are better than good that your current existing payment amounts combined will be more than the debt consolidation payment that you will make when the debt elimination process goes through. This means that you keep more money in your pocket to spend on necessities and bills so that you do not have to incur even more debt just to pay living expenses.
Paying Down Your Debt
Once you have completed the debt elimination process, paying your debt consolidation company on time each month is the last step. With timely monthly payments and diligence, you will find yourself out of debt and living a debt free lifestyle sooner than you may have thought possible.