How do I know if debt consolidation is right for me?

How do I know if debt consolidation is right for me is a very good question. Before you answer this question we should take a little time to do an evaluation of what is going on with your Credit card debt and when do you want to see this Debt relief.

Debt consolidation should be a family affair as it will involve all aspects of the family spending. If you are the only one in your family than this will be quite simple. The first thing before you know if debt consolidation is right for you is to make up a family budget. You need to know where every little penny is being spent. If you stop at Starbucks for that coffee, this needs to be listed. If you give your children lunch money daily, this needs to be listed. If you stop and buy a coke on the way home from practice, this needs to be listed. Are you getting the picture? Everyone in the family needs to list where they spend every dollar, quarter, nickel and penny.

Now that you have the list down, let’s see the big picture. Do you have money left over to put into savings, or do you overspend and have a negative balance? If you have the negative balance, you need help and NOW. You need to do something different from what you are currently doing or that negative balance will continue to grow and just consume you.

If most of your money is going to pay on your Credit card debt, you need to make a change. First off, stop using the credit cards immediately. Cut them up and throw them out. Call the creditors up and tell them to close the account. They cannot actually close the account with a balance on the credit card, but they will prevent any new charges from being put on the credit card.

Next, look at your list and decide where wasteful spending is going on. Starbucks and cokes can all be stopped. There is a couple of dollars. Make lunches for work and school. Now you have more extra money. Keep doing this until you get the budget to no longer have a negative balance. Once you have done this, you can now proceed to get real Debt relief yourself. You do not need to pay extra money to go to a company and have them do this for you. You can do this. Just be persistent and stay focused.

If the balances of the Credit card debt are just overwhelming, then you should seek the help of professionals. Click here for a list of good companies that can help you get out of Credit card debt.

You might also want to consider debt consolidation loans. Debt consolidation loans will pay off all of your debt in one sweep and now you will only have the debt consolidation loan that you will need to pay off. The key is to cut up all of your credit cards and no longer use them again. You will be amazed on how stress free you will become without Credit card debt. Plus, debt consolidation loans payments are usually substantially lower than had you been making the monthly payment on all of your Credit card debt.

You can have Debt relief through debt consolidation. Do your homework and ask a lot of questions before signing on the bottom line. Talk things out with the family. Debt problems need to be out in the open and not in a closet. Debt problems can destroy families if they continue down the wrong path.

I hope this article helps you make that step closer to doing what you feel is best for you and your family.

Until next time,

Janna Jones.

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