How to Consolidate Your Debt

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By myhart23
User-Submitted Article

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Debt Free

Most people go through a debt consolidation program to pay off their debts. While these programs are great for most, they aren’t so great for some. Maybe you can’t afford what they have set up, or there is another problem. There is a way to do it yourself. There is only one catch; you must stick to your plan.

Difficulty: Moderate

Instructions

Things You'll Need:

Calculator
Pencil
Paper
Phone
Bills

Step 1

The first step is to gather all of your bills. If you don’t know what you owe out, you can request a copy of your credit report once a year for free. Also, make sure you have the time to sit down and go through everything without interruption or very little interruption.
Step 2

Next you want to write down all of your debt information. The information you will need to write is the creditor’s name, address, and phone number, your account number and the amount you owe them. Total the amounts up.
Step 3

Now you know how much you owe to each creditor and how much you owe out total. Do not get discouraged by the numbers. Now you want to figure up exactly what you know you can come up with each month to be split between the creditors. Even if the amount is only $200, you need to know what you have that you can dedicate to paying off your debt.
Step 4

Now you know how much income you can use to pay off your debt, you will want to write an amount next to each creditor. On your calculator enter the amount you are able to spend each month to pay off your debt. With each amount you write next to each creditor, subtract it from your monthly amount. This is done to make sure you don’t go over what you can afford.
Step 5

Now comes the hard part; calling each one of the creditors. No one likes to do this because we all know how difficult they can be. However, you will want to start this process with a positive attitude. Let each one of them know what you are doing. You are paying off your debt. Let them know what you can afford to send them each month. Some creditors will give you a discount for setting up a payment plan. Remember, if they try to get you to go by one of their payment plans, make sure it is not higher than the amount you have written. If it is, let them know your amount is the best you can do. Make sure to make each payment at the same time each month.