3 Tips for Obtaining Personal Debt Relief

Personal debt relief is most effective and least costly when you learn to do it yourself. Try these simple tips for getting yourself out of debt.

1. Avoid Costly Settlements

Debt settlement and consolidation companies often charge higher fees than the lenders you currently owe. While these companies can save you if you face bankruptcy, they are an option of last resort instead of an easy way out.

2. Know How to Budget

Start by setting up a simple budget. Your current fixed costs, such as housing, utilities and fixed payment debts, should never amount to more than 50 percent of your monthly income. If they do, you should consider cutting those fixed costs or taking on additional work. If they don't, then you have additional wiggle room to make higher debt payments each month. Create a budget that is in balance, and you will have an easy time making payments.

3. Stick to a Plan

Creating a budget is easy. Sticking to it is much harder. Some tips to stick to your plan include the following: leaving your credit card at home for emergencies only, budgeting how you will spend your cash each month, tracking everyday expenses like gas and groceries, and most importantly, foregoing unnecessary purchases until your bills are in line.

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