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Improve your Credit with
Debt Management
Are you finding it almost impossible to make all your bill payments? Are creditors constantly harassing you? Are your overdue accounts now being managed by collection agencies? Are you afraid that your car, house or other asset will be re-possessed? Debt management can help you.
The first thing you need to know is that you are not alone to have answered yes to many of the above questions. Most people, at one time or another in their lives, face financial hardships. Secondly, you need to learn how to deal with your debt and improve your credit rating.
I doesn't matter if your current financial troubles are because of loss of employment, illness in the family or spending irresponsibly, it may seem like it is impossible for you to overcome. It is possible. You can stop making it worse and with debt management, it can get better. If you or someone you care about is having some financial troubles, please consider some of the following options:
Budgeting
If you want to take control over your financial problems, it is imperative that you make an accurate assessment of how much money you earn and how much of it you spend. Start by making a list of your income and all your fixed monthly expenses. Fixed expenses are expenses that will cost you the same amount each month like your rent or mortgage, car payments, insurance, etc..
Once that is completed, make a list of all your expenses that vary like entertainment, clothing, car gasoline, lunches, etc.. As insignificant as they may be, try to list all of your expenses. This practice will help you a lot when trying to determine your spending behaviors and also to determine which expenses are absolutely necessary and then listing the rest by priority.
You can get some really helpful information on money management and budgeting at your local library. Most communities also offer some inexpensive budget counseling. You can references to budget counseling services in your yellow pages or at your local bank branch. If you are a member of the military, a university or a credit union, chances are that will run a non-profit financial counseling program as well.
Handling the Debt Collectors
Did you know that Federal law regulates how a debt collector may contact or attempt to contact you? The Fair Debt Collection Practices Act states that:
- Debt collectors are restricted from contacting you before 8a.m. and after 9p.m.
- Debt collectors may not contact you at work if they have been advised that they may not contact you at work.
- Debt collectors may not make false statements.
- Debt collectors may not harass you.
- Debt collectors may not use unfair practices when trying to collect a debt.
- All debt collectors must honor a written request from you to stop contact.
Debt Consolidation and Credit Counseling
If your bills are piling up or you have trouble creating and following a realistic budget, you should consider contacting a credit counseling or debt consolidation service. Many times creditors will be willing to accept reduced payment plans from reputable credit counseling, debt consolidation or debt management firms.
Article written by S.A.M.
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