Friday, May 8, 2009

Pay off Debt….An effective way to get rid of debt.

If you are in Debt and looking to find out a way to get out of it then you can go for either one of this self repayment plan which is a very effective plan or you can go for professional’s debt relief program where you will find a professional who will make a study on your case and then help you to get you free from debt.

Here are some self repayment tips that will help you to clear your debt by yourself.

1.Analyze your situation and then immediately contact your creditors and start negotiating for a suitable repayment plan according to your financial situation.

2.Try to repay your monthly payment as quickly as possible by increasing your monthly payment and in the process you will be able to save a lot of money in a long run.

3.If you have made any savings then you can use it to repay your debt faster or even you can borrow money from your retirement plan like (401k) plan if you are a retired person and above 60 years of age this will help you to save you a lot of money which you were paying as an interest on debt.

4.Try to transfer your high interest debt to your low interest credit card by negotiation with your creditors. If he allows.

5.Always try to pay off your high interest debt first so that you don’t have to pay additional interest charges.

6.If you have any option from where you can borrow money like from any of your friends or family members you can borrow money from then and repay your debt at once.

7.Try to cut off your expenses, especially lucrative expenses to pay off your debt quickly and get out from the burden of debt.

8.If you have gathered enough equity on your home then you can take a home equity loan to pay off your debt.

Still if your are not able to analyze your situation of debt and not able to pay of your debt using self repayment plan then you can go for debt relief program by professionals, they will help you to get rid of debt which I will be discussing in my next post…….Have a debt free life.

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