1.
Plan a Budget Planning a budget seems to be an exercise in commonsense however for many people suffering from debt related issues it is more complicated than that.
When debt is an issue in your life credit cards are often used as an over expanding lifeline to prevent financial catastrophe.
Many households in Michigan in debt think that a budget is beyond their grasp.
However, the sooner one is planned the quicker households and individuals can start rebuilding their finances.
The key to planning a budget is to itemize your current expenses and income coming in.
Evaluate all spending luxuries first.
If you spend $150 per week eating out for instance; cutting out this luxury and applying $150 towards debt would go a long way towards repairing your finances.
2.
Ask for Debt Settlements Many people mistakenly believe that credit card companies and debt agencies are unreasonable.
However, it is in their interest to write your debt off their books.
So be polite but ask if they would be willing to consolidate payments if you have multiple lines of credit with the same institution for example.
Another strategy is to ask debt collectors if they would be willing to settle for a certain percentage of the total debt owed.
For example a $5,000 dollar credit card debt could be settled for $2,000 over time if you negotiate properly.
The key is to maintain a positive attitude and do your research.
Remember if you are patient and determined, a brighter financial future is the reward.