Debt Disaster: How to Get a Grip on Your Finances Before it’s Too Late
Thursday, November 6, 2014, 1:00 AM | Leave Comment
There is a fine line between manageable debt, and getting into an entire debt disaster. The trick to getting a grip on your finances before it’s too late, includes apt attention to a realistic picture of the current financial situation combined with a close-up look at how the debt is actively being managed.
By identifying what’s working to successfully eliminate debt, and what is contributing to less control over a situation, anyone struggling financially can regain their footing in order to improve their bottom line.
Moving forward and out of debt is a daunting yet doable process. It takes effort, strategy and a lot of dedication.
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5 Steps To Regaining Financial Control
The first step in managing debt is to truthfully assess the situation. As difficult as it is to review and evaluate the negative numbers, it is a critical step for getting out of the red.
After you know where you stand, the next step is coming up with a feasible, strategic approach for tracking, managing, and eliminating debt, one account at a time.
When a plan for managing debt is ready to implement, the next step is being honest with yourself about a fair time frame for completing the goal.
The fourth aspect of regaining financial control is setting clear, small goals that will lead to the final desired outcome.
Lastly, continuing debt-free habits, revisiting areas that need additional improvement, and appreciating your hard work is the final phase in enjoying an improved financial situation.
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How to Capture Debt Accurately
Finding out how much you owe can be approached in three ways.
Debtors can organize their finances to determine what is owed bill by bill, they can reference a professional credit report and review lender information, or they can use a personal finance computer program to calculate debt.
Setting up an electronic spreadsheet or table to list obligations, amounts, due dates and interest is another authentic way to capture debt accurately.
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Ways to Eliminate Debt
Debt elimination strategies range from transferring balances and zeroing out one account at a time, to peer-to-peer lenders, making double minimum payments and filing for bankruptcy in order to gain a fresh start.
Bankruptcy companies like McLay & Company Inc Trustee in Bankruptcy are available directly online to evaluate whether or not this avenue is advisable.
Improving a bad debt situation takes work, flexibility and courage. Working towards financial independence, where it will no longer be necessary to work for basic necessities, can be accomplished by zeroing out debt and by understanding how assets will generate income greater than expense when managed correctly.
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