The Debt Settlement Checklist: How to Conquer Your Debt

Banks Editorial Team · January 23, 2018

Who doesn’t want to conquer their debt?

If you’re someone riddled with debt, you probably know the reality of waking up every morning, shuddering over the amount of money you owe to lenders. More than that, you probably consider the interest rates on that money, and how they are thwarting your future ability to save and make a life for yourself. It is far too easy to rack up debt today, and many responsible and financially frugal individuals can fall into that trap.

Debt settlement is something to consider if you’re tired of living this way. Check out our debt settlement checklist for the type of debt repair you’ve always dreamed of:

1. Balance Transfers

You need to get your money out of high interest rate accounts as soon as possible. This is going to take a hit on your credit score, but it is worth it in the long run. Lowered interest rate accounts will save you hundreds. But, you do need to do your homework and check that the lender is not charging any balance transfer fees. Terms can also be changed at any time, so make those phone calls.

2. Negotiation

If you’re feeling bold, you can possibly negotiate a lower interest rate with your lender. However, this is only a possibility if you have good credit right now, and a history of being fairly responsible with payments. It’s worth a shot!

3. Close Unused Cards

If you’ve never used a credit card, but have it looming in the back of your wallet, close the account and cut up the card to evade any identify theft. Make sure to get rid of the newer cards first. The longer you maintain a relationship with a lender, the more they can improve your credit score.

4. Check Your Credit

If you’ve been slammed with interest rates that you feel are unfair, it could be because of a recent drop in your credit score. Many times, companies make mistakes, and slam you with a score that is not actually indicative of who you are as a consumer. If you want to get a hold of debt settlement, you need the best possible credit score working alongside you.

5. Loans

There are loans that can help you get on top of the wild interest rates. However, this kind of debt consolidation is only an extension of your debt, and will require payments as well. If you’re prepared to be responsible with your payments for years to come, then this is a viable way to settle your debt and start managing your finances.

6. Save

To be as preemptive as possible, you need to start saving your money now, too. As you play around with debt settlement options, if you have money mounting in your savings account, you’ll be able to say goodbye to debt once and for all in the future.

Conquer Your Debt

Right now is always a good time to conquer your debt.

It’s going to take some time, so be patient, and get started today.

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