3 Tips To Quick Debt Reduction

If you have a problem with debt, you are in the same situation as many people in the world. The burden of overwhelming debt is universal, so you do not have to feel like a failure. You can also feel secure knowing that there is a way for you to eliminate the problem. In fact, there are several things you can do to minimize the amount of debt on your plate. The following are three quick and easy debt elimination tips. You can start with these, and then come up with additional debt slashing solutions based on these 3 processes.

Freeze All Activity

The quickest way to reduce and eliminate debt is to stop using credit. The more you use those credit cards, the higher the balances will become. This problem will not get any better until you cut the cards and work with only the cash that you have. You must also stop applying for unnecessary credits. Creditors love to entice people to open up new accounts when they see that person already has many accounts. It is a pretty backwards marketing method but for some reason it works. Do not fall into the generous creditor trap. Stay away from the applications until you have your situation under control. The only exception to this rule is a debt consolidation loan.

Review And Dispute

There is a little trick that you can do with your credit report. Few people know about this trick. You can obtain a free copy of your credit report just by simply requesting it from the credit bureau. Once you receive it, you can use it as a tool to diminish some of your debt. The credit report will show a list of your credit accounts, balances, and your payment history on such accounts.

You are entitled to dispute any account that you do not recognize. If you do not recognize the account, perhaps someone else opened it up in your name. The creditor may have also opened the account for you fraudulently. Your spouse could have even opened the account without your knowledge. There are many reasons why you may want to dispute many of your accounts. Once you open up a dispute, the credit bureau must investigate the account to see if the creditor has proof that you opened it. If a creditor can not prove beyond a shadow of a doubt that the account is yours, it must remove it from your record.

Consolidate

Although there are many solutions for eliminating debt, consolidating is one of the most effective. Consolidation is a process by which you would put all of your open accounts together. That way, you will only have one monthly payment for all of your debts. This process will be very beneficial for you if you have more than five credit accounts. It will eliminate confusion about payment dates and make things neater for you. It may also save you money. If you apply for a consolidation loan, you may be able to get an APR that is lower than the ones that you have on your current accounts. In the long run, you could save thousands of dollars.

There are three ways you could go about consolidating debt. You can pay a third part debt solution company to pay your bills for you and negotiate with your creditors. You can apply for a debt consolidation loan. You may also apply for a high limit credit card and pay off all of your open accounts with that. The choice is yours.

If you follow these three tips, your debt can be reduced very quickly. You should be able to see results within 30 days. Continue to make timely payments and stay away from any new debt and you will be on your way to financial recovery.