In today’s working world nothing is a sure thing. When you find out your company is downsizing, or shutting its doors and you are losing your job, life becomes very stressful. If we can’t get a job right away, and we can’t pay our monthly bills, the phone starts to ring from your creditors. Many times our impulse is not to answer the phone, but this only makes matters worse. Our problem is that we are financially sick and we need help. A debt settlement calculator is like using a thermometer when you are sick. These calculators will help you determine your total debt, and a payment plan over a period of time to pay off these bills. How do find these calculator’s? By searching for a debt settlement company online, a debt settlement calculator will be on their site.
Once you have entered your information, then a credit counselor from a debt relief company can outline a plan to fit your specific needs. They will help you with, reducing interest rates, repayment plan with one monthly payment, eliminating collection calls, improving your credit score, debt counseling, and more.
But before that happens it is important that they know the details of your financial circumstances, such as, do you have any kind of savings? Many times people set money aside for an unforeseen emergency. Therefore, the solution could be to take part of that money to pay off credit cards, or loans each month until they are paid off. Some people go out to eat several times during the month, go to the movies, take weekend vacations, stop for snacks or drinks, etc. If you cut back on these things for a period of time, think of the money that could go toward paying off debt. Here are some things to think about:
– Starbucks. One report said the average person spends $1,092 each year, just at Starbucks
– The average person spends $2505 each year eating out.
– If you smoke the average smoker spends $165 each month! $1980 each year.
The money saved by cutting down just on these three things above, or simplifying your life for a period of time, could pay off credit card debt quickly. So, with careful planning, and controlling some spending, you can outline a schedule to pay off your debt.
If you are of the 27% of households that has over $7,000 in assets, like savings, or money market accounts, you may be earning more or less than 1%. Now compare that with the average APR, which is 14% for credit cards. Would it not be wise to use some of your savings to pay off debt? Something to think about.
Of course, most people live from paycheck to paycheck. Several surveys suggest as many as 77% of Americans do. If your personal circumstances are preventing you from making your monthly payments, then it may be in your best interest to consider consolidating your payments into one. A credit negotiator will work with your creditors to reduce interest rates. You will have one monthly payment over a period of time.
It is important that you make your payments on time each month, and keep in regular contact with the company you choose. When credit cards begin to get paid off then those monies will be added to other credit cards or loans or payments. So, do your homework, make sure you fully understand the details of the contract you sign with a consolidation debt company, and how much they will be charging as these charges varies from company to company.
Once you have your plan in place, life will be so much better, no worries about the phone ringing, knowing your creditors are getting paid. What are you waiting for, there is not cost to use a debt settlement calculator, and no worries about extra charges for asking questions. It will give you peace of mind, and you will sleep better at night.