Solutions to Consumer Debt - Self Help

As mentioned previously, the first direction most consumers will go to is self help. The idea here is to handle credit card problems independently as an individual. One resource that many consumers use is the website http://www.bankrate.com/ This is a database of credit cards and consumer based products which can be of value when handling personal debt. One tool available on the Bankrate site, is the ability to find low-rate transfer offers. A consumer can often transfer a balance from a high interest card to a low interest card. Sometimes these transfers are for a limited time period, some extend the life of the debt. It is very important to read the terms carefully to make sure you understand all fees and conditions of the transfer offer.



Another avenue of self help can be borrowing funds from family or friends. The value of this method is often times family and friends will not charge interest on the borrowed funds. If interest is added to the borrowed amount often times it would be substantially less then going to an additional credit card. A benefit of going with a credit card transfer could be to further establish a positive paying history on a credit report.

Budgeting is an excellent tool for getting out of personal debt, but is often overlooked. I would highly recommend doing a budget to determine what expenses are adjustable and can be reduced. Should you need budget forms, they are available on the CACC website:

http://www.creditadvocates.org/Budget_Worksheets.pdf

Lastly, prior with going to a Consumer Credit Counseling Agency try calling the creditors first. Often times creditors have internal hardship programs, which can offer better terms for the individual if they qualify.

We will go over the remaining 4 solutions to consumer debt in our next installment of Consumer Credit Q & A.