An Alternative to Using Debt Consolidation Companies

Debt consolidation can cost you money that you don’t have. The company has to make money somehow and in the end, you may be spending more money with them than what you would spend to settle your debt outside of the debt consolidation company. For an alternative to using a debt consolidation company, try consolidating your debt yourself. You may feel overwhelmed right now with just thought of handling your own financial mess, but you have to remember is that your financial mess is yours and you need to own it and take care of it.

Where to Start with Your Debt

If your credit card debt has been sent to collections, it’s time to deal with them directly. Call the collections agencies and tell them your situation. In most cases, they will be happy to work with you. This is actually what debt consolidation companies do but charge you a fee for it.

Once you work out a plan with the collections agencies, pay them with something other than a personal check. You don’t need to provide them with any other information about your finances. You can get a money order or a cashier’s check by going to your bank.

While it may take you a while to dig yourself out of credit card debt, it’s possible with a close relationship with your creditors.

(Photo Credit: http://www.flickr.com/photos/eric731/2662649632/)

June 19th, 2009 by Marcelina Hardy | Posted in Debt Management | (0)