Debt Consolidation Economy In Low Cycle Reevaluate
It seems most things go in cycles. Up and down, good or bad. That is what happens in the economy too. With the economy in a "low" cycle, many people are reevaluating some of their financial choices and one of the top things people are looking at is debt consolidation.
Debt consolidation can mean different things to different people. Some people seem to think that they need to hire a company to help them with it. Others think they should get a home equity loan so they can consolidate all their debt. Still others rather just do it themselves.
All of these are viable options but some people just don't like the idea of getting a loan to consolidate debt. This is a good option only if you can control your spending habits. Some people will do just fine with this method but others will just go out and rack up more debt, and that is what can lead to real trouble.
If you are a do it yourself type of person, I have compiled a list of some things that may be able to help you out, it is not a quick fix but it may be able to help you out:
1. First of all, where are you financially... really? This may be a painful step for some. Taking stock of just how much debt you really do have can be a scary thing but until you know where you are, you can't make a plan to get to where you want.
2. Once you know exactly what your debt is you have to figure out how much money you have coming in every month. Deduct the amount you make from your living expenses to see how much money you have left over every month.
You may find that you are spending more than you are making, many people do. What you will have to do is "find" some money in order to consolidate your bills.
Most people waste at least a little money every month. It may not be a lot but anything that you can free up can be applied to paying down your debt. As I said above, this method isn't a quick fix.
If you can free up even $50 a month you can start with your smallest bill and apply that $50 to your bill. Make sure you pay the normal amount too, but add the extra money every month. Doing this will allow you to pay off your bill more quickly.
Once that debt is paid off you can take the money that you were paying on that bill every month, plus the extra money you have been applying to it, and put all that money to pay off your next smallest debt.
Keep doing this and you will find yourself debt free. How long it takes will depend on how much debt you have, how dedicated you are and how much money you are able to free up.
Debt consolidation can be something that you can do all on your own if you choose. No matter how you go about it, make sure you do it as quickly as possible. You will have much more peace of mind when you are done.
