10 Steps to Avoid Visiting a Debt Consolidation Lender.

With some exceptions, consolidation lenders cannot help you out of your financial situation. There. That's the truth in black and white.

All consolidation does is move your debt around and, usually, adds to your debt balance by charging you more interest and stretching your payments out over a longer period of time.

It's rarely the best solution to your problems. The only real solution is to take the bull by the horns and work hard to change the way you handle your finances.

Here are 10 independent, empowering steps you can take to get out of debt - without visiting a debt consolidation lender.

1. Create a spreadsheet and list all your debts. For each debt, list:
   • the lender, with contact information
   • the total amount owing
   • the minimum monthly payment
   • the due date of your next payment
2. Create another spreadsheet and list all of your other monthly expenses. Use your checkbook or bank statement and get your figures as accurate as you can. How much do you really spend on movies or lattes? If you don't have exact figures, make the best estimate you can.
3. List all of your regular income. Remember, you are going to have to write your expense and income information down one way or the other. Better to write it down for your own purposes, than for the benefit of a high priced debt consolidation lender.
4. Brainstorm ways to slash your monthly expenses.
5. Brainstorm ways to generate more income. You are worth much more than you think. Think in terms of "how can I DOUBLE my income over the next 12-18 months?"
6. Set goals. Goals that are specific, achievable and have a time attached to them for completion.
7. Create a budget and stick with it. You empower yourself a great deal, just by managing your money ON PAPER each and every month.
8. Contact your creditors if necessary. If you work out your budget and discover that no matter what you do, expenses exceed income, you're going to have to negotiate to pay less than a minimum payment on some of your bills.

   It's better to do that than to contact a debt consolidation lender, or worse yet, a bankruptcy attorney.

9. Establish momentum. Choose your smallest bill and pay it off as quickly as you can. Then take the money you were sending to that creditor, and use it to pay off the next smallest bill, and so on.

   You'll be amazed at how quickly your debts begin to disappear. Every time you pay a bill off, it gives you additional momentum toward the next one. As you pay those bills off, be sure to write the creditor and close the account.

10. Reward yourself. Not just when you're debt-free. Reward yourself for each and every success. If you stuck to your spending plan this month, find a way to give yourself a reward. It doesn't have to cost money; it just needs to make you feel like you've accomplished something.

    You're doing a great job-and you're doing it without the help of a debt consolidation lender. Congratulate yourself for it.

» Debt Consolidation Services for Seniors - Are They A Good Idea?
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» Debt Relief Consolidation - Will It Work For You?
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» Free Debt Consolidation Advice - Steps To Living Debt Free
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