With credit card applications so prevalent and tempting "deals" to be had everywhere, more and more people are finding themselves in debt.
Here are some tips to help you clear up bad debt.
Are you ready? Let's begin.
First, you will need to get a list that lists all of your debt; ordering your credit report would be a good way to do this.
After getting your credit report, you should make a list of the people/companies that you owe money.
Sometimes, you will have to work with collections agencies instead of the original company that you owed debt to; this is because the original companies sold off your debt to them.
You should order these companies in order, starting with the company you owe the smallest amount...
clear up your bad debt with them first so interest does not accumulate.
It really is a good idea to pay off your debt in full with one or two companies as opposed to paying small amounts to everyone that you owe.
If you just pay small amounts, you may end up getting nowhere with the interest.
If the debt is a substantial amount, you will want to contact the companies and give them an offer less than the amount you owe (or at least have the company take of late charges and other possible fees).
These debt settlements can help you save some money.
However, you will want to pay off the debt after you pay any other bills you owe for that month (utilities, rent, etc).
It may take you a few months -- maybe even years in extreme cases -- but, clearing up bad debt can really take a lot of stress out of your life.
Also, if you are doing something like looking for a new home, clearing up bad debt will help your credit score.