Debt Elimination
Non-profit, credit counseling agency

How Does Debt Occur? 

Debt can begin as a series of poor financial choices, an unfortunate accident, or an unexpected expense. For example, you may have spent money you didn’t have on a new car or a vacation, or you’ve let utility bills and credit cards rack up to the point where they’re difficult or impossible to pay. When you’re spending money you don’t have, debt can increase rapidly – especially when you fall behind on your monthly bills and find yourself paying late fees and other penalties.

You might also have found yourself in debt as the result of an accident or emergency. Perhaps you were involved in a car crash that led to a series of medical bills, leaving you in debt for years afterward. Difficult life situations such as losing one’s job or getting a divorce can also spin you into the cycle of debt.

Video: Benefits of Credit Card Debt Elimination

Debt worsens when you find yourself needing to borrow to cover your expenses. Taking on more financial obligations to cover the bills you already have just makes debt elimination that much more difficult. 

debt elimination

How Can Debt Affect Me? 

paying off debtOnce you’ve discovered that bad financial decisions or unexpected expenses have landed you in debt, you may already be troubled by some of the negative fallout associated with the debt. For example, you may be experiencing harassing calls or letters from creditors, or been turned down for a loan, credit card, or job because of poor credit.  

Debt can also cause strife within the family, since finances are strained beyond the point of manageability. Many divorces are attributed to financial difficulties within the marriage. Children also suffer as a result of the tension in the home. 

Here’s the good news: Debt is reversible. Debt elimination can help stop creditor harassment, improve your credit history, and let you and your family live a more peaceful life. 

Video: How to Pay Off Credit Card Debt

How Can Debt Elimination Help Me? 

Debt elimination can help free you from the burden of financial difficulty. It’s not a miraculous overnight cure – you didn’t get into this in one fell swoop and you’re not going to get out of it without some work. However, when you work with professionals who can help you eliminate your debt, debt elimination can indeed become a reality. 

eliminate debt

Debt elimination takes work and dedication, but it offers extremely positive results. You can eliminate debt through a debt consolidation program, which can streamline your financial picture so that you only have to worry about a single monthly payment. You’ll have a lower interest rate on your account/s, which means paying less money over time. In addition, debt elimination can get your credit picture back on track, increasing your score over time so that you have a better chance at qualifying for loans, credit cards, apartments, or jobs.  

The hard work and dedication involved with debt elimination also offer a valuable financial education. Once you’ve worked to get your money matters back under control, you’ll be far less likely to let your finances spin out as a result of overspending or letting bills get out of hand. 

How Does the Debt Elimination Process Work? 

The first step toward debt elimination is to actually understand that you need to get rid of the debt. This means making a commitment to stop spending on unnecessary items, along with putting away money each month to cover unexpected spending. 

After you’ve made the decision to get your financial life back into your hands, it is time to contact a professional. There are established debt elimination programs that have the power to help you turn your money matters around. 

Video: How to Write a Debt Negotiation Letter

When you contact a qualified debt consolidator, you’ll get connected with an experienced counselor who can evaluate your individual financial situation. He or she will negotiate with your creditors to reduce your monthly rate and establish reasonable payment terms so you can eliminate your debt over time. You and your counselor will establish a reasonable monthly payment arrangement, which allows you to make a continual effort toward paying down your debt. 

In the long run, debt elimination stops creditor harassment while allowing you to pay down your debts earlier, since those who stick with a qualified debt consolidation plan are more likely to be debt-free sooner than those who attempt to negotiate with their creditors on their own. Eliminating your debt can provide a more stable financial picture for you and your family. It will also let you get current with your bills along with saving money each month. 

help eliminating debt

Best of all, debt elimination provides invaluable financial education. Your counselor will work with you to understand the patterns of debt, the spiral that comes from overspending and not preparing for emergencies, and the ways you can not only get debt-free, but also stay that way in the future.

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