If you have a lot of debt
and are looking for a way to dig yourself out, debt management
can be the way to go. A word of caution, proceed carefully.
Many debt management agencies make promises that are not
realistic. It is important to research each company you are
considering very carefully to avoid digging a deeper hole.
Choose debt management agencies that are reputable. Ask for
references, and, of course, read the fine print before you
sign anything. Once you begin your research into debt
management programs you may discover that much of what the
agencies offer, you can do on your own. If you choose this
route, the following plan will help you get started.
Collect all of your bills together and make a list of:
- amounts owed
- account numbers
- contact information (address and telephone numbers)
Debt management is more palatable when you have a clear
idea of what you owe and to whom. Contrary to popular wisdom,
ignorance is not bliss. Unfortunately, hiding under your bed
will not erase the debt. Only time and a sound repayment plan
will. Okay, so you've cleared the first hurdle - facing the
problem. Now you must take a look at your budget so that you
can develop a workable repayment plan. You may feel some
hesitance about calling creditors if previous interactions
have been strained - but, still you must call. Take a deep
breath and remind yourself that it is not personal and you are
not a deadbeat. You will be calling a person who is doing a
job. You will have a job to do as well - implementing a debt
management plan that gives you back your life. Calling is a
critical step that cannot be avoided. You may be surprised at
the cooperation you receive. From offers to reduce interest
rates or bring your account current with a payment or two
creditors are often willing to support your debt management
plan. After all, it's in their best interest.