6 Steps to a debt-free life

7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
7 Steps to a Debt-Free Life
How to get out of bad debt without using a debt management service
By Laura Wolf
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
Disclaimer: Every effort has been made to make this free report as informative as
possible. If you find that the methods detailed below are not suitable for
your situation, contact a professional debt management agency. Solve My
Bad Credit does not offer guarantees regarding to debt consolidation, as we
have not personally assessed your situation. Although we have collected all
the suitable methods to help you solve your bad credit.
Copyright (R) Laura F Wolf - Solvemybadcredit.co.uk
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
So why do you have bad credit?
You might have just found yourself in the situation when you can't handle your finances
any more. This happens to many people, and you are not alone. The success lies in how
you are dealing with the situation. Many people have got out of debt with help, and IVA
is also available for people who are struggling to pay their bills.
I personally never had bad credit. You might think that I am not competent enough to
give you advice on credit problems. You need to know that I have seen many people
struggling with debt over the past five years. I used to work for one of the largest
financial organizations in the UK. And I could tell you many stories about how different
people get into bad debt. But I won't. I will plainly concentrate on solutions for your
problem, and nothing else.
You have bad credit, because your income does not cover your existing
commitments. You can't afford your payments any more. And as you miss more and more
payments, your debt repayments are increasing. This is a Catch 22.
No matter what the reasons are: you are in a situation which needs urgent attention.
And you can do it, if you are reading and following the seven steps to a debt free life.
Warning: Nobody actually got out of bad credit without taking actions. I am going to
give you the basic guidance to start your successful debt consolidation plan, but I can't
take action for you.
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
What can you do about bad credit?
There are different methods to deal with your debt. You can get in touch with a debt
management company. This will cost you money. You can also contact some charities,
like the Citizens' Advice Bureau. But it might take a few weeks if not months until you
are getting an appointment with any charities.
"Debt is a growing problem in the UK today, and charities are overwhelmed with
queries. They don't seem to have enough qualified staff or volunteers to deal with
debt related queries. "
The best way to deal with your debt is to set up a plan on your own. This report will give
you all the guidance you need to get started. You will not need anything else but a
calculator, a couple of sheets of paper and a pen.
Ready?
Let's Start then!
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
The First Step Towards a Debt Free Life
You should start with assessing your credit situation. The most common mistake people
with bad debts do is not facing their problems. Don't make the same mistake. You have
to make sure that you are involving other people, affected by your debts. This includes
your partner, your parents and grown up children.
Don't worry, I know that this is the hardest thing in life, but you will not succeed with
your "do it yourself" credit consolidation any other way. And I can promise you that it
will only get easier...
Tip: When you can look into the mirror and say out loud: " I have a debt problem" you
will know that you have completed the step.
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
The Second Step Towards a Debt Free Life
You need to assess your credit situation. It should not take you a lot of time to get a
statement of all the accounts you hold with different credit companies. You need to
contact the one by one, and get a balance. If you have personal loans, you should get a
settlement figure. The balance usually does not include the extra interest you are
charged when closing the account early.
Next you need to set up a folder to contain all your financial information. Put the
account statements you are currently in arrears on, on the top of the pile, because you
will need them first during the next steps.
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
The Third Step Towards a Debt Free Life
Create a spreadsheet detailing all your credit commitments. You can find an example
below.
Month
Name
Balance $
Interest
Monthly
paid $
payment $
1-Jan
Credit card
3500
52.5
280
1-Jan
Car Loan
21000
175
250
1-Jan
Home Loan
36000
420
500
2-Jan
Credit card
3272.5
49.09
280
2-Jan
Car Loan
20925
174.38
250
2-Jan
Home Loan
35920
419.07
The Fourth Step Towards a Debt Free Life
Once you have all the information you have about your credit, you will need to create an
"income and expenditure" report. You might think that this sounds scary, but it is not
hard at all. It can really be broken down to FOUR EASY STEPS. You don't have to be a
rocket scientist to do the report. On the other hand, you will save a lot of money by not
hiring a debt management company to complete it for you.
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
Step one:
find out your monthly take-home pay
Step two:

find out what your expenses are
Step three: find out how much you spend on each expenses
Step four:
see if your monthly expenses match monthly take-home pay
P. S. If you are struggling with bad debt, chances are: your expenses will be well over
your monthly outgoings. But not to worry: we can fix this in a moment!
The Fifth Step Towards a Debt Free Life
Once you have got your income and expenditure sheet set up, you can quickly determine
what is causing your bad credit. You have to sit down with your family, to set up a
plan,and look into options to budget better. We will get back to the budget sheet in a
second, but first we need to cut through the jungle, and deal with the most urgent
problems.
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
The Sixth Step Towards a Debt Free Life
Now, you do have the income and expenditure sheet, and you have also determined
what is causing your bad credit. You have to get hold of the statements of the accounts
you have previously chosen to be the "black sheep" of your credit situation.
Get in touch with the credit company. If it is a credit card, ask for fixed payments. If
you are having problems with your overdraft, your best option is to visit the branch
personally with your printed income and expenditure. In case of personal loans you
might ask for an agreement reschedule.
If you call the company on the phone, make sure that you are asking for their physical
address, and you are posting it to them as well, recorded. You need to make sure that
your query will be dealt with.
If you are in arrears, you should contact the collection department, to find out about
your options.
If your credit rating allows, you can even apply for a consolidation loan, to reduce your
outgoings.
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7 Steps to a Debt Free Life
http://www.solvemybadcredit.co.uk
The Seventh Step Towards a Debt Free Life
If you have managed to come to an arrangement with your creditors, it is time to repair
your credit. Look through your family budget again, and cancel any unnecessary
expenses. You might have some subscriptions you don't use, or even a second car you
should get rid of.
The only way to get rid of your debt fast is to
a, spend less
b, earn more
You should make sure that you are finding ways to do one of them. You can even start
digging through the old CD-s or clothes and sell them on the Internet. You might take on
a few hours of freelance work, to help you manage your budget.
You absolutely must ensure that you are meeting your new commitments, and are
reducing your debt at a faster rate. That is the only way to rebuild your credit rating.
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