The Big Debt Reduction Technique
I want to give you some debt reduction techniques; some magic formulas that will solve your debt problems. Really I do. Did you know that on any given day there are about 8 million searches for the phrase “debt reduction” and even more for the phrase “debt consolidation.” This gives you some idea about the state of our collective financial well-being. I don’t have to go through the litany of reasons why so many people have gotten themselves literally buried in debt, but here are just a few: easy credit-lending institutions offered loans to people who shouldn’t have been given them; a ballooning economy with inflated home and stock prices giving people a false sense of their own wealth; a relaxed regulatory environment, where companies offered ridiculously inviting terms like interest only loans, sub-prime loans, 100% financing, and much more causing people to over-extend their purchases. Of course the balloon popped and all of these things have reversed themselves. The chickens have come home to roost.
Where to Place Responsibility
It is easy to join the chorus of shouts in placing blame for your debt problems onto someone else. However, this type of thinking has only served to exacerbate the problem and is partly to blame. Do you remember the famous plaque the sat on Harry Truman’s desk? It read, “The Buck Stops Here”. I think we need to reread those words especially in regard to our financial well being. Debt Reduction can be accomplished by you. You should be the one calling the shots in getting your finances and debts under control.
The most Important Debt Reduction Technique
Did you know that most debt consolidation companies offer services that many times are simply things that you can and should do yourself? Here are some things they often offer you: negotiate with your creditors to reduce the amount you owe or the terms and/or interest rates that you pay. They make phone calls and write letter on your behalf to do this. Is this something you can do? I think so and you won’t be paying for it. These debt reduction companies often advise you to consolidate your debt through a debt consolidation loan this may be good; however, getting a home equity loan or refinancing your home is a usually a better alternative as the interest rates are usually lower and the interest is tax deductible. What about refinancing your car? Many people don’t realize that cars can be refinanced as well. Why pay hundreds or even thousands for having someone do for you what you can and should do for yourself. Do your homework, take charge and be assertive. The best debt reduction technique of all is simply: you have the ability to do it yourself. Debt reduction is never accomplished over night and there is no magic to it. Companies might claim to have the secrets to solving your debt problems, but the debt reduction secret is that there are no secrets. Don’t be fooled into paying for them. It takes work and smarts, both of which I am sure you possess.
Posted in Debt Reduction | 
Tags: Chickens, Debt Consolidation Companies, Debts, Harry Truman, Lending Institutions, Litany, Regulatory Environment, Stock Prices