Go Debt Free

Go Debt Free And Be Happy!

The protesters were outside of Citibank's headquarters, protesting credit card debt. Their mission? To encourage people to go debt free instead of being in debt. Sure, as with any protest, they knew they were risking arrest, but it was a peaceful protest, other than the signs that read, "Go Debt Free!" and "Be Debt Free!" and the occasional group chants of "Go Debt Free!"

How to Go Debt Free

When you want to be debt free, getting there can seem like an impossibility. It's an endless cycle! You pay your rent, your car payment, your utilities, your student loan payment and your credit card minimums, and then you barely have enough left for groceries and gas, which forces you to sometimes use your credit card for those things, thus sinking you further into debt. How are you ever supposed to get out? The voice of experience says it's a hopeless feeling. But at least you're paying your bills, keeping your head above water--just barely. Still, it's keeping your credit intact, even though you're probably miserable. You probably didn't know this, but you do have options. There's a whole industry--the debt management industry--whose focus is on helping you become debt free through one of the popular debt management programs available today.

Here's a brief outline of some of the most popular ways to go debt free:

• Debt Consolidation - This is a popular way to go debt free because no loan is involved. Instead, a debt management company negotiates with your creditors to get your unsecured debt balances and interest rates lowered. Then the new, lower balances are combined and you make one monthly payment to the debt consolidation company, which they distribute among your creditors. Because of the reductions, you can become debt free in about five years.
• Debt Consolidation Loan - A loan given to you to pay off your unsecured debts. You pay off your unsecured debts immediately, but you still have the loan to pay back. The benefit is that the interest rate on the loan is so much lower (generally half of what you're paying now) and you can have it paid off in five years or less.
• Debt Consolidation Mortgage - Allows you to borrow from the equity in your house to pay off your unsecured debts. Your payment is combined with your mortgage, and you get the same interest rate as your mortgage. In some cases, the interest is even tax-deductible (check with your tax advisor to see if this will work for your tax situation).
• Student Loan Debt Consolidation - Combines all of your outstanding student loans into one and locks in a much lower, fixed interest rate for you. Your monthly student loan payments are cut in half, too, because you are given more time to pay them off.

Do any of these options sound good to you? If so, search our Related Resources page to begin your search for a debt management company.

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