It was over two hundred years ago that Thomas Jefferson, George Washington, and others declared America's independence from Britain. You can declare your own independence from debt. Once you make the decision to get rid of your debt, make a statement. Read this aloud (replace the italicized words with your name and today's date):
"I, your name here, declare on this day, today's date, that I will be free from debt. I have the right to pursue freedom from debt and I will exercise that right by taking the steps necessary to eliminate my debt."Make it official by printing out the statement and signing your name to it, just like John Hancock did with the Declaration of Independence.
How to Get Started
- Ordering a copy of your free credit report. You'll need it to figure out how much debt you have.
- Examine your debt load. Do you have too much?
- Make a plan to get out of debt. Keep your credit report handy for this step.
- Get the money you need to pay off your debts.
- Know the signs of credit card debt. It will keep you from getting deeper into debt as you're trying to get out.
Get Help If You Need It
- A consumer credit counselor may be able to assist you.
- Before you enroll in a particular credit counseling agency's program, make sure to get the answers to some key questions.
- If you choose a credit counselor, there are certain things you should be wary of, like an unfavorable standing with the Better Business Bureaus (BBB).
- Combining your debts through debt consolidation may allow you to lower your debt payments.
- Be wary of debt settlement companies who often make your sitaution worse.
Deal With Harrassing Debt Collectors
Your creditors might hire third-party debt collectors to get you to pay what you owe. Learn how to deal with collectors, even when they're not acting professional.- If you don't think you owe a debt, make the collector prove it by sending debt validation request.
- If you're sure the debt is yours, decide how you're going to pay it.
- You have the right to stop debt collectors from calling you.
- A cease and desist letter will stop debt collectors from contacting you period, via phone or mail.
- Make sure you know your rights when it comes to third-party debt collectors. Be familiar with the things debt collectors can't do.
Preserve Your Good Credit
Once your debt reduction efforts start paying off, make sure you continue to keep up the good work.- Stay away from spending habits that lead to debt.
- Continue using your credit cards the right way.
- When you use your credit cards charge only what you can afford.
- Avoid bad debt that can lead you back into debt overload.
