Are you always in debt and wondering on how you can wipe them out? You are never alone! According to recent research conducted by the UBS, out of the 3.6 trillion which is currently owed by the US consumers, $1.1 trillion is owed by the millennial ages of 21 to 43.
You will definitely fall sick when you continue worrying about your debts. Being in debt can easily result in collector harassment. Here are five amazing ways that will help you wipe out all your debts and ensure you stop being stressed.
1. Ensure you Find out the Hidden Money in Your Budget
Paying off your debt is the only legal way you can get out of the debt without hurting yourself. In order to get your debt paid down, you need to take a careful look on various ways in which you can put more of your money towards repayment of debts. You will always be surprised by the total amount of money you will scrape up. A great example is raising the insurance deductibles in order to reduce your monthly subscriptions can help you free hundreds if not thousands of dollars every month.
Using coupons will ensure you save on household items and groceries. You can always print the online coupons or order ones that are usually cut from the Sunday paper and match them with the corresponding sale ads to get the best deals.
2. Always Get Outside and Help in Reaching a Settlement
Failing to pay your debts can make creditors take aggressive steps to help them in global debt recovery. Collectors can always win legal rights that will make your employer to automatically deduct money from your pay check to repay them in a process known as wage garnishment.
3. Always Negotiate your Payment Plan
Creditors are always known to be more flexible that you can ever realize. Waiving late fees, lowering the monthly payments and deferring a payment or two are some of the things they are always willing to offer you. However, you need to be smart whenever you approach the creditors for negotiations. Avoid being obnoxious or rude since the collectors can easily outclass any person in such areas.
4. Ensure you put a Burden Proof on the Collector
Creditors are usually known to sell delinquent debt to the outside collectors. However, most of the outsiders usually do not have any idea on the number of accounts they will be collecting on. This will be of great benefit to you since the collectors must always prove that you owe them. Whenever you are dealing with any collector, you need to question whether the debt is accurate or legitimate. You also need to know the person owning the debt and how they got the right of collecting it.
You can always challenge the right to collect within 30 days after being contacted. Any collector not able to prove you owe cannot make any collection. It is important you also find out how old the debt is. In most cases, the time limit is usually between three to six years though it varies from one state to another.
5. You can get a Discount on Your Debt
Most of the collectors are usually known to settle for a fraction of debt of what is owed since they usually buy the debt cheaply and they usually receive profits even if they collect 16% to 24% of the total amount of debt. It is possible to come into agreement with the original creditor though it is much easier once the debt has gone into collections. In order to settle a debt, always communicate in writing and ensure you are always prepared for a back and forth negotiations.