How to Get Help with My Debts

Debt surmounts and becomes uncontrollable for various reasons such as unemployment, illness, divorce and mismanagement of finances. According to financial expert, Suze Orman, excessive credit card debt is at epic proportions in the United States among the rich and poor. Help is available to get your financial situation under control and alleviate the stress associated with excessive debt.

Instructions

1

Contact a debt relief agency or attorney to set up a debt management plan. Consumer Credit Counseling is a not for profit agency that provides counseling services, educational services and debt management services. They negotiate with creditors to reduce interest, late fees and penalties. One monthly payment is typically paid to the agency and individual payments are dispersed to your creditors on your behalf. There is a fee for agency services.

2

Negotiate with creditors directly. Credit card companies, banks, medical facilities and loan holders tend to adjust your payment terms. Often, creditors reduce interest rates or offer a settlement amount less than what you owe. Call your creditors; explain your financial situation and ask about house debt relief assistance.

3

Contact your local or state government regarding financial assistance programs. Energy assistance, housing assistance, child care assistance or food assistance programs may be available. If you are eligible to receive assistance in these areas, this frees up funds in your budget to be used towards payment of existing debt.

4

Follow a plan. Suze Orman's "9 Steps to Financial Freedom" outlines necessary steps to be taken to get out of debt. She advises cutting up credit cards, paying more than the minimum payments every month and paying off the credit card with the highest interest rate first. Other ideas include negotiating for the best interest rate with your credit card holders, understanding loan terms like late fees and over limit charges, honoring all of your debt equally and seeking help from a debt relief organization.

5

Request a copy of your credit report. Review your credit report for inquiries from lenders and any negative entries from your creditors. Dispute any information that you think is fraudulent or inaccurate. Know your credit score. Interest rates and the ability to obtain loans are based on this score. Credit reports also contain contact information to help you settle any amounts that you owe.

6

Join a support group such as Debtors Anonymous. Share your experiences and frustrations with others in the same situation. Members share solutions and resources for getting out of debt and staying out of debt. A support group offers advice on changing spending habits, providing a plan and encouragement to get financial situations under control.