The 6 Steps of Debt Relief

Recovering from debt can be tough. We are here to help you get back on your feet. Let’s take a look at the 6 easy steps for debt relief.

1. Admit Your Debt is Out of Control

The first step to debt recovery is admitting your situation is no longer in your control. In most debt situations, most of the debt stems from overuse of a credit card. Now, this does not necessarily mean that your position was caused by you. Unexpected medical bills or auto repair could have put you in a tight financial spot. Either way, the first step in the debt-relief journey is admitting that you need help with your debt.

2. Decide to Make a Change

You need to make the choice to help yourself. You may have admitted that you have a problem, but if you don’t make the conscious choice to fix it, then you will never get out of debt. Change will look different for every situation, so make sure to consult our website for all of your options.

3. Make a List

Creating a list will help you understand your situation. Without a list of your outstanding debts, you will have no way of knowing the extent of your situation. This is the best way to know what your next step will be.

4. Make a Plan

Now that you know the exact extent of your debt, you can make a plan to get out of debt. There are two main options for debt relief. The first option is a debt consolidation loan. A debt consolidation loan is the best way to manage multiple forms of uncontrollable debt. To learn more about these loans, check out this article. The second step is a debt settlement company. This should be your last resort before seeking a bankruptcy lawyer. To learn more about settlement companies, check out this article.

5. Adjust your plan

Your plan will have to change periodically throughout your debt-relief journey. Be sure to monitor your expenses so you avoid slipping deeper into debt.

6. Save for the future

The most important aspect of debt relief is setting yourself up for the future. You may not think that you have the means to save for the future during the debt-relief process, but you have to work saving into your budgeting. If you don’t, you could find yourself right back where you started.

About Cole Fowler

Cole Fowler is the Content Lead at Rateology and writes about topics regarding smart financial decision making. He is an English student at Texas A&M and is based out of Grapevine, TX.

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