Seeing a credit counselor is not absolutely necessary just because you are having debt problems. There is no law that states anyone is required to do so. Many people in debt are afraid to consolidate their own debt because they fear any further harassment by creditors. One must first know that if you have written or called a creditor and are trying to pay off debt after negotiation and a creditor tried to contact you about that debt, they are doing something that is illegal and proper authorities should be called to make a complaint.
If you are trying to lower the interest you pay to creditor and want to invest less in debt payment, a do-it-yourself debt consolidation is a wise choice.
These are some steps to help you through a do-it-yourself debt consolidation:
1. Prioritize all debt. Make a list of all debts and put them in an order of priority. Make sure to note who the creditor is of each one.
2. Determine affordability. Make a list of all your income, including wages, child and working tax credits, child tax and state benefits, etc. Then determine how much you can afford to pay each debt every month.
3. Contact creditors. Start with the top of your priority list and call that creditor first. Find out if still have the debt or have sold it to a collection agency.
4. Validation of debt. If the debt is now being held by a collection agency, ask them to validate it before any payment is made. You can use a debt validation letter for your request.
5. Negotiate with creditors. Negotiate to lower the interest rates to reduce the payment.
6. Confirm affordability of debt payment. Once a payment amount is agreed on, make sure it is not more than what you can afford.
7. Consolidate all credit cards. Take multiple credit cards and consolidate them through a balance transfer.
by Hector Milla |
