Tips for Developing a Successfull Debt Consolidation Plan
Contributed by Melanie Vannuys
Tips For Developing A Successful Debt Consolidation Plan
With more Americans spending more and making less, is it any wonder that a debt consolidation plan may be necessary? While it's true there are a few out there who have no credit card debt - kudos to you! However, the sad fact remains, there are millions of Americans who have an average of $8000 just in credit card debt alone. With creditors making it easier and easier to obtain some type of credit card, it's no wonder that Americans as a whole are swimming in debt.
The only "true" debt consolidation plan, is the one that you do yourself. It doesnt' even involve consolidation - but a debt plan:
* distinguish honestly between your wants and needs;
* don't buy something unless you need it - a good rule of thumb: if in doubt, take twenty four hours to sort it out!
* make and stick to a budget;
* avoid impulse buying!
* record all credit card purchases against your anticipated income. If all of your total expenses, including mortgage or rent, car loans, etc, exceed your income - don't buy it!
* when you can't pay your balance in full each month, pay at least more than the minimum.
* establish and stick to a regular bill-paying routine;
* NEVER make late payments to your credit card companies. The late fees can add up and then tack on over limit fees, starting a never-ending vicious cycle.
If You Are Really In Over Your Head And Need A Plan for Debt Consolidation, Be Prepared To Search
If after going over the steps above, you still find yourself in a sea of debt, it may be time to consult a professional to put a debt consolidation plan into place. While acquiring a debt consolidation loan may lower your credit score, not doing so is going to do the same thing. Creditors monitor your credit management constantly. If you are continuously living with an extremely high debt to income ratio - it could cost you.
