Debt Settlement – How to Write a Letter Asking a Creditor to Settle Debt2 min read
Calculate your bills and income
The first step is you will need to calculate all of the bills that you owe, including past due bills. Add your groceries for the month and gas, as well as extra things that may come up. Next, you will need to calculate your income as well as your partner’s income if you share the money. This will give you a general idea on how much extra you have after paying the bills. Whatever the amount is left over after the bills, you should be setting that aside to pay on debt. Even if you make the minimum payment, at least you are working towards paying it off.
What can you cut out?
There are certain things you can easily live without. When you go grocery shopping, try to only purchase the necessities. To save on gas, only go to and from work. Doing just these two things will make a big difference; leaving you to pay more to work off your debt. There are other little things that add up to make a difference such as only using the electricity when you need it. For example, do you really need the lights on during the day? This will make a significant difference. Try only air drying your clothes instead of constantly running the dryer. Every little bit helps.
Consider picking up extra side jobs
It’s important to enjoy your family on your days off. However, if you have a significant amount of debt, it’s advisable that if you can pick up extra hours at your current job or even pick up small jobs, even as small as helping someone do yard work, this will help tremendously. Any extra money to pay off debt will benefit you.
The importance of putting together a budget
It may seem overwhelming but once you have your budget all thought out, it will be such an easy process. It’s not going to be forever. Everyone has debt issues from time to time, big or small, the sooner you start taking control of the problem the easier and faster it will be to get yourself in good standing again.
It’s important to develop a budget so you can get out of debt faster. Your partner should be included in this plan. Together the two of you will come up with many ideas on how you can save money; leaving enough money to pay off the debt. Being debt free takes a lot of stress off a family; it all starts with working out a budget plan and following through with it.