Understand Debt Elimination

Have you ever thought about debt elimination, debt reduction, debt settlement, or debt consolidation? These terms frequent the minds of a certain class of people—those who have gotten themselves over their heads in debt. Hopefully you are not one of them, but if you ever are you need to understand your options.

Inherent Risks in Debt Elimination

Our frustration with debt often causes us to listen to people who offer us quick fixes to our problems. Unfortunately, most people do not realize the dangers of listening to these voices.

One temptation that attracts many when they feel overwhelmed by financial matters comes from companies who promise debt reduction or debt settlement with our creditors; they advertise that they can help us eliminate our obligations for only pennies on the dollar with no undesirable consequences.

This is a good place to remember the old saying, “If it sounds too good to be true, it probably is.” When it comes to debt elimination there is no quick and easy way to go and anyone who tells you otherwise is not telling you the whole story.

The Best Debt Elimination Program

When you have ten thousand dollars of credit card debt or more and wonder how you could ever get it paid off, it is easy to look for short cuts. But the truth is that many people with limited incomes have paid off $100,000 in debt and more. You can probably pay off your debts, too.

There are many reasons for meeting your responsibility even when it is challenging. If you don’t pay your own debts, someone else will have to and your own sense of dignity and integrity have a great influence on your ability to achieve more in the future.

I have a section on this site dedicated to getting out of debt, appropriately named Get Out of Debt. Check it out. If you apply what you find there you can get out of debt even if you owe an immense amount of money. It takes work, but it can be done.

Most Debt Elimination Doesn’t Work

Of course there are exceptions where something like bankruptcy is necessary, but this is a rare case. (Don’t forget that a bankruptcy lawyer makes his living by convincing people they need to file for one!)

Even bankruptcy won’t eliminate student loan debt, IRS obligations, debts from personal injury lawsuits, fines or penalties to the government (like speeding tickets), many debts to retirements plans, child support and alimony or in many cases mortgage debt.

More important, the negative consequences of so called debt elimination programs are many, including a lot of costs. Yes, even if they do reduce some of your debts these companies (most of them) increase your debts first to make themselves some money.

For more information aimed to improve your understanding of how debt elimination programs work, or more accurately how they do not work, check out the following web site: Debt Settlement Companies.

The bottom line, in my opinion, is this. Even if you reach the point where you really cannot manage your money, even if bankruptcy is your only choice, avoid these so called debt reduction companies. Get help from a reliable, local source like a competent, ethical lawyer. Either that or carefully check out the responsible help that is available. One such organization is the National Foundation for Credit Counseling (NFCC).

A Better Plan for Debt Elimination

The truth is, if you get in control of your finances, develop a good plan for getting rid of your debts, and exercise persistence and patience, you can almost always succeed as many others have in simply paying off your debts legitimately. Really, you can actually do it!.

If you truthfully want to become a successful person, financially, accept the fact that there is no quick fix. Understand, instead, that you are a person of integrity who is fully capable of accepting responsibility for your decisions and paying any debts you have created.

Then, start working on a plan to deal with them. Before you know it you will discover that you have greater potential than you ever realized. You do not need or want a debt reduction, debt settlement, or debt consolidation company to do for you what you can do better yourself.

The important thing to understand is that it is a quiet inner feeling with no basis in fact that something will unexpectedly happen to eliminate your debt that keeps you from taking action. But circumstances only get worse and worse until this emotional immobilization is eliminated.

As soon as we “face the music,” accept our situation as it really is, and decide to act decisively, it is amazing how our world can change around. Debt can be eliminated but only when we choose to act. The best way to do that is to stop creating more debt and then pay off what we owe as quickly as possible.

Get Out of Debt Now!

Don’t even think about those debt elimination options (debt reduction, debt settlement or debt consolidation). Don't think about hard it is to get out of debt. How long it will take. Just do it.