Debt Solutions

Debt solutions are important elements in effective financial planning techniques.

This section covers sections to assist you in understanding your debt, establishing a plan to take control of it, and then executing a plan to reduce it.

Debt Help
To get true debt help one must first recognize there is a problem. We live in a debt driven culture. There are several insidious forces that encourage people to embrace debt.
This debt mentality leads many people to financial crisis again and again. However, it doesn’t have to be that way.


Make a Budget and Stick to It
Budgeting your finances is a powerful step in establishing a strong financial plan. Make informed choices on what you can afford, and what you can’t. Uncover realistic places you can cut back on your expenses. Then you can use that money to pay down your debts.


Debt Reduction
Debt reduction is a critical step on the road to financial freedom. It consists of freeing up money from creating a sound budget. Then use that money to pay down your debts through debt consolidation or other forms of debt relief. Freed up money accelerates debt reduction significantly.


Debt Consolidation
Debt consolidation is an important step in debt reduction. There is some great budgeting software. Or if you are spreadsheet savvy you can set up your own debt consolidation spreadsheet.

Debt Consolidation Loans
Debt consolidation loans are taken out to secure a lower interest rate, a fixed interest rate, for servicing just one loan or a combination. These loans are a two edged sword. They can several potential benefits, but some significant drawbacks.


Debt Relief
The best way to get debt relief is to take charge of it yourself instead of depending on debt relief services. There are excellent resources to teach you what you need to know. They will help you take an aggressive approach to eliminating your debt. It takes time, dedication and a willingness to change. However, the rewards of taking command of your debt are numerous.


Bad Debt verses Good Debt
Understanding bad debt verses good debt is key to determining which debt to pay down first, second and so forth. Bad debt includes unsecured loans and secured loans for depreciating assets. These debts should be at the top of the list for paying off.

Good debt is debt that is used for legitimate appreciating assets. Starting a well planned business, or investing in an appreciating asset are reasons to consider good debt.


Final Thoughts on Debt Solutions
Taking an assertive approach to reducing debts strengthens a person's financial position, saves money on interest rates and helps one sleep better at night. Overall it is a win win proposition.

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