You are Young, You are Female, You are Unique & So is Your Debt

Regardless of your age, gender, race, or socioeconomic status you are at risk for getting into debt. Debt knows no boundaries and can strike anyone at anytime. Of course there are ways you can limit your risk factors; such as budgeting, saving, and savvy spending, but what about those of us who are afflicted with debt by an unexpected life event?

Divorce, single parenthood, job loss, or an illness can leave us with mountains of debt in the blink of an eye. These curveballs can really take their toll on young woman.

Debt no matter how it happens often brings about feelings of anxiety, fear, frustration, and sometimes shame. While your fears and feelings are valid, it’s important to overcome these emotions, pull yourself together, and get on the right track to paying off your debt.

In order to pay off debt successfully, it is important to commit yourself to improving your financial situation for the long term. There is no such thing as a quick fix. Getting out of debt takes commitment, dedication, and a realistic plan. With so many options to choose from and experts saying there way is the “best”, it can be difficult to know where to start, who to seek advice from, and how to avoid being scammed.

You Can Do This-DIY Style

If you decide to go this route, you must understand that paying the minimum balance each month is not enough. In order to pay down your debt, it is essential that you pay more than the minimum balance each month. You can drastically reduce the amount of interest paid by paying more than the minimums, as more of your money will go towards paying the principal amount owed, thus cutting your balances dramatically.

For help calculating your payments and payoff date using your specific balances and interest rates, visit CareOne Debt Relief Service’s credit card calculator.

Here are a few tips to reduce your debt, DIY style:

• Pay off accounts with the highest interest rate first, regardless of the balance owed.
• Negotiate with creditors for reduced interest rates.
• Create a budget and stick to it!
• Consider making simple changes to your lifestyle to cut costs.

Help is Available, if you Need It

If you find that your attempts at DIY debt elimination are unsuccessful it may be time to seek help.  Many of us are in too deep, so to speak and are not even able to pay the minimums and need help negotiating with creditors and consolidating our debts into a monthly payment we can actually afford. While negotiating with creditors on your own is possible some are not willing to budge and leave us in a position to ask for help. So what’s out there?

• A Debt Management Plan (DMP).  With a DMP, all of your unsecured debt is consolidated into one monthly payment. When you enlist the services of a debt management provider, the company will work to assist you with an affordable payment plan. With a DMP, you must be certain that you can afford to make consistent monthly payments because if you fail to make a payment or are late, it can affect your relationship with creditors.
• Debt Settlement.  With a DSP, the debt settlement provider will negotiate with your creditors to accept a portion of your unsecured debt in satisfaction of the full amount. With debt settlement, you’ll make affordable monthly deposits into a trust account. This type of debt relief plan will have a negative impact on your credit, so it’s important to discuss this and all options with a qualified representative.

Dealing with debt can be overwhelming for anyone, and no one wants to be taken advantage of. So how can you find a reputable debt relief provider to help you?

Knowledge is Power

Unfortunately, many debt relief providers offer nothing more than scams, designed to make money for them but put you at risk of identity theft, fraud, and financial ruin. So it’s important to do your research when looking for a legitimate debt relief provider.

Here are a few things to look for:

• Beware of ads promising “quick” or “easy” debt relief. If you want to get out of debt the right way, realize that it will take time, discipline, and a fair amount of work!
• Consider the source. When searching on the web look for companies that have a comprehensive website, a listing with the Better Business Bureau, and their phone number clearly displayed.
• Longevity is important. The most trusted companies have a long, successful history of helping consumers with their financial needs.
• Ask for recommendations. There’s a good chance you know someone who used a debt relief provider, ask them about their experience.
• Customer feedback is valuable.  Look for companies that offer full disclosure of their services.
• Ask for details and read the fine print. The best debt relief companies will have no problem giving you the details of the plan they recommend for you and your particular financial situation. If you’re uncomfortable reading and understanding the paperwork yourself, consider having an attorney review the agreement before you sign. And never sign anything if you feel pressured to do so.

You know your debt situation better than anyone. If you find you are struggling with debt but can develop a plan to pay off your debt on your own—Go for it! Don’t wait start today, putting it off will only make things worse and maybe even put you in a situation where you get behind.

Going it alone is not for everyone. Some of us need the help a debt relief provider can provide and there is no shame in asking for help. Know your provider, ask the right questions, and stay involved to make working with a provider and getting out of debt a success.

Have you ever used a debt relief provider? What was your experience?

This post was provided by Suzanne Cramer , we are honored to have her share with our Smart Money Chicks Community

Suzanne is a certified credit counselor and a Social Media Specialist for CareOne Debt Relief Services. Suzanne writes for Divorce, Debt and Finances and A Straight Talk on Debt. Follow Suzanne on Twitter @ADivorcedMom  and @AskCareOne where she shares her insights on divorce and managing your finances.

Photo Credit:  Alan Cleaver

Andrea

Andrea is the Chief Chick of Smart Money Chicks. After filing BK twice (once because she panicked, second time because the pro messed the first time up), she realized that it all could have been avoided if she understood more about how her Finances worked and the options available. At that point, she wanted to help as many as she could never make the same mistakes again. Our Promise is that all the content you read on here is created or edited by Andrea