Lower Your Debt Balance With Ease

Your debt can seem like a crippling influence on your life. We all have some debt, but there are times when it can seem like it has taken control and is actively working to destroy your life. In the United States, the amount of debt owed by its citizens has been steadily increasing over the years and it can seem overwhelming. However, it’s important to remember that you can be in control of your debt and that there are ways that you can lower your debt balance without it taking the rest of your life.

LOWER YOUR DEBT BALANCE

Ways to Lower Your Debt Balance

When you have decided to take control of your debt, rather than letting it control you, there are several ways to make it easier to lower your debt balance more aggressively.

Redo your budget.

You may already be following a planned budget, however if you are still having problems controlling your debt then it can be well worth your time to create a new plan to go by. It can help if you pay more attention to the fact that you want to pay off your debts more quickly and build that into your budget, as well.

Cut back on your spending.

If you want to be able to effectively lower your debt balance, it is very important that you learn to control how much you spend. You will have to learn the self control needed to just say no to the things that are unnecessary.

Make it hard to spend.

If you make your money harder for you to spend frivolously, then it will be easier for you to reach your goals. Don’t take large amounts of money with you when you go shopping and limit your credit cards.

Look for extra income.

In order to pay your debts off more quickly you need to make some extra money. Look at your lifestyle and see if there are any hobbies that you can capitalize on. Also, think about picking up some side jobs for awhile.

Clean out your home.

Try getting rid of possessions that you don’t actually need. You can not only make extra money by selling them, but you might even find that you can find a smaller home and pay less every month if you clean out some of the clutter.

Look At Debt Settlement to Lower Your Debt Balance

In some cases you might be able to settle on some of your debts in order to reduce your total amount owed. There can be ups and downs to this type of solution, but it’s definitely something to consider if your lenders are willing to work with you. When you consider settling your debts, you are looking at negotiating with the creditor in order to pay off a smaller amount then what you originally owed. Anything left on the original amount gets wiped off.

Here are a few things to keep in mind when considering debt settlement.

  • The thought of you filing for bankruptcy will often help persuade your creditors to settle with you. They can’t get any of the balance owed at all if you have declared bankruptcy, so lead with this.
  • Try to low ball your lenders by starting off the negotiations with an offer of a 50 percent payoff. They most likely will go up from here because the national average is about 70 percent, so this gives you something to work with.
  • When you settle your debts, it is important to make sure that you have a lump sum payment to give your creditors. You might look at taking a disbursement from your retirement plan or try to settle around the time that you get a tax refund in order to optimize this opportunity.
  • In order to lower your debt balance, you need to know the situation that you are in. This means that you should do your research on the lender or creditor that you are going to be dealing with. It’s necessary for you to gather this information so that you can figure out the best way to approach your negotiations with them.

As you can see, it is well within your reach to lower your debt balance in an effective and aggressive manner. There is no need for you to feel like you are drowning in your debt or that it’s controlling your life. If you are determined to take control of your finances and pay everything off as quickly as possible, there is absolutely no reason why you can’t accomplish this. Just remember, it takes determination, self control and your willingness to change some of your bad spending habits. If you have these, then pretty soon you can be enjoying your life with less stress, more income and the freedom to do more of what you want.