Your 5 Step Guide To Getting Debt Relief Fast

Carrying balances on multiple credit cards is stressful and expensive, and paying them off quickly can be a challenge. That’s especially true if you are living paycheck-to-paycheck or dealing with other debts simultaneously, like student loans. But it is possible to get debt relief even with those challenges.

This 5 Step guide can help you develop a plan to pay off your debt or identify the best debt relief option when a traditional payoff plan just won’t cut it.

Step 1: Stop making it so difficult to get debt relief Before we get into how to set up the right plan to get out of debt, we need to touch on one of the biggest mistakes people make when they need debt relief— they keep spending on credit cards while trying to pay them off.

Step 2: Create a budget that’s optimized for getting out of debt A budget is essential in your quest to get out of debt, no matter which debt relief option you end up using. You need to get a budget in place—written out and not just in your head.

Step 3: Take stock of your debts and decide on a repayment strategy Now it’s time to get down to the nitty-gritty of obtaining debt relief. That starts by figuring out exactly how much you owe, what it’s costing you, and where each debt stands.

Step 4: Set up a debt reduction plan This is where your budget comes in because minimum payments aren’t going to help you get out of debt quickly. Instead, you need to put as much money as possible towards paying off one debt at a time.

Step 5: Explore options for debt relief If you owe more than $5,000 total or you don’t have much cash on hand for paying off debt, then the strategies above won’t get you the results you want in the time you want. Instead, you need to find a debt relief option that will fit your needs, credit, and budget.

There is one type of debt relief program that can have tax consequences—a debt settlement program. If you settle a debt for less than the amount you owe, you may be required to pay taxes on the percentage that you didn’t pay.

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