Stressing About Debt? How to Ease Your Debt Burden

Debt is one of those things that can make a person feel anxious and stressed. The thought that you may not be able to meet your monthly obligations can sometimes keep you up at night. There are ways to ease your burden and get some much needed rest.

Forbearance

If you find yourself getting behind on your debts, then ask your creditors for a forbearance. This is when your creditors move your payments around to give you some breathing room.

For example, your credit card company may agree to lower your monthly minimum payment for six months or, in extreme cases, the creditor may agree to postpone six months worth of payments to give you a chance to catch up.

It is important to remember that a forbearance does not eliminate payments. You are still responsible for the principal on the debt, and your interest will continue to accrue. But a forbearance can give you the time you need to get caught up on all of your debts.

Contact Your Creditors

A forbearance is not the only option your creditors can offer. The biggest mistake people make is not contacting their creditors when debt problems start to pile up. Your creditors want you to make your payments. That is why they have a lot of options they can explore.

If you are stressing about your debt, then don't avoid your creditors. Get on the phone and call your credit card companies today to see what kind of relief they can offer.

Make More Money

The fastest way to relieve your debt burden is to have more money on hand for paying bills. By cutting out things like going out to eat for dinner three times a week and going to the movies every weekend, you will instantly increase the amount of cash you have on hand.

Other options include getting a part-time job, offering to do odd jobs for family and friends for a fee, making money on the Internet with online auctions or product survey websites or asking if there are ways to make more money at your current job.

Unfortunately with a sluggish American economy, the task of making more money may be easier said than done.

Get Good Advice

One of the problems that people in debt have is that they do not know where to turn for good financial advice. Unless your family member or friend is a financial professional, then he is not going to be able to offer you the advice you need.

The best way to combat stress is to have a plan. A financial professional such as a credit counselor or debt relief expert can give you a plan that will allow you to sleep at night.

Make Your Payments On Time

When you start making late payments, your monthly minimum payments will start to go up. If you read your credit card bills, then you can see exactly how much of your payment is the monthly minimum and how much is the late fees and interest charges.

When you start to make your payments on time, then you will see your monthly minimum payments drop. If you have several late payments each month, then you may have a few hundred dollars in late fees every month. Paying your bills on time will definitely ease your burden.

If you could make your payments on time, you probably wouldn't be reading this article. So let's talk about an aggressive form of debt relief that can ease your financial burdens.

Debt Settlement

Debt settlement may be the most effective way to ease your debt burden and lower your stress. A professional debt settlement expert will negotiate with your creditors on your behalf to lower your debt to a fraction of what you owe. This can save you thousands off your principal balance and interest charges.

Once you have received your free debt analysis and your monthly payment amounts have been agreed to, the debt settlement firm will develop an account for you where you make one payment for your debt. If you apply your extra money towards your settlement account each month, then you can have all of your debt paid off within 24-48 months.

Overwhelming debt can be stressful. When you take the right steps to reducing your debt burden, you will feel the stress lifting as your debt starts to disappear.