Consumer Debt Assistance

High consumer debt can stay in the back of your mind and interrupt your sleep. Constant phone calls from creditors seeking payment and letters threatening legal action are common when you get behind on your payments. Instead of drifting deeper into debt and facing collectors, take steps to eradicate debt and ultimately help your credit score.

Know Your Budget

Without a personal budget, it's easier to overspend, which can result in using credit cards to compensate for the lack of cash. Rather than get into the habit of using credit cards, learn how to budget better and only spend what you've allotted each month. Determine how much you need for essential expenses, such as your mortgage/rent, auto loan payment, insurance, fuel costs and other recurring expenses. Next, set aside a modest amount for entertainment and miscellaneous spending. Adhere to your budget to avoid running out of cash and living on credit cards.

Minimum Payments

When reviewing your budget each month, include higher payments to credit card companies in your budget. If you routinely pay the minimum each month, start increasing payments to bring down the debt sooner. Use the savings from eating out less or shopping less to pay down your consumer debt.

Debt & Interest Rates

Credit card companies charge interest rates to earn money from cardholders. However, interest rates are negotiable, and depending on your credit history, some lenders will temporarily assign 0 percent interest to your account. Getting a low rate requires asking for it; some card companies do not randomly lower rates. Check out your statement to see how much you're currently paying in interest, then contact your company and ask for a better rate. Paying a reduced interest rate lowers how much you're charged in interest each month. After increasing the amount of your payments and lowering interest charges, you can pay down debt faster.

Professional Assistance

Consumer debt elimination isn't necessarily a solo task. Several debt elimination or consolidation agencies are available to assist you with your consumer debt. Programs vary, but on average, these companies assign a representative to work with you. They create a new repayment schedule, then contact your existing creditors to work out a lower interest rate on your accounts. Debt elimination and consolidation agencies place a freeze on your account, which prevents new charges. Thus, you're able to pay down balances without re-accumulating debt.