Recession Talk: Do-It-Yourself Debt Consolidation

With the recession causing job losses, income losses, increased prices, and financial insecurity, more and more people are looking for ways to manage their finances, especially when it comes to debt. One of the popular financial products being advertised as a debt solution is debt consolidation. If you are considering debt consolidation, then you might be happy to know that you can do it yourself, without needing to hire a professional for help. Here’s how to go about debt consolidation yourself:

Step 1: Analyze your current financial state

Before anything, you will need to gather some documents and information that will help you gauge your current financial state. Collect your income slips, credit reports, monthly bills, receipts, and any other relevant financial documents, so you can analyze them and fully understand what is causing piling debt and how you can address the issue through debt consolidation.

Step 2: Do your research about debt consolidation

Now that you know the ins and outs of your financial situation, you can start doing your research on debt consolidation. Read up on the Internet about how debt consolidation works, how companies consolidate your debt, and how the system can help you settle your debt problems.

Step 3: Find a reputable and reliable company

Next, search the Internet and visit local companies for debt consolidation services. Find out how the companies go about debt consolidation, especially the companies that offer non-profit debt consolidation. This will help you in understanding how to go about getting your own debt consolidation.

debt consolidation

Photo source: http://www.flickr.com/photos/oh_tinkerer/6849842755/

Step 4: Start your DIY debt consolidation plan

Now that you know practically everything you need to know about debt consolidation, you can go about executing your DIY debt consolidation plan. Begin by calling up your creditors and negotiating with them. Show that you know exactly how bad your financial situation is, and express that you have a plan prepared on how they can help you work down your debt. Negotiate with all of the creditors on your credit report until you are able to work down some of your debt costs, interest rates, and fees.

Related questions:
1. How do companies profit from debt consolidation plans?
2. Will debt consolidation get rid of all my debt, like what chapter 7 bankruptcy does?
3. Won’t debt consolidation just lead to more debt if I don’t have a steady income?
4. How do you qualify for debt consolidation?
5. How will I know if a debt consolidation company is just trying to rip me off, instead of helping me?
6. Which is better — brick & mortar or online consolidation companies?
7. What is the criteria for evaluating debt consolidation plans?
8. Do debt consolidation plans differ from person to person?
9. Are there any kinds of debt that cannot be consolidated?
10. How long will the consolidation repayment plan last?

Related sites:
How to Approach a Friend for a Personal Loan — Asking for a personal loan from a friend
How to Find Support Groups for Credit Card Debts — Finding credit card debt support groups
How to Raise Money to Settle Credit Card Debt — Raising money to pay off credit debt
Debt Consolidation — About getting a non-profit debt consolidation
Cash Money Life — DIY debt consolidation options.

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