Consolidate debts to reduce your debt load

Hi everyone! I've an article from a Guest Author who doesn't want to be named on how to manage your debt. Now if you are currently trading, I trust that you are NOT in debt. If you are, I urge you to seriously commit yourself to settling your debt before trading. The additional psychological pressure of holding a debt while trading is certainly detrimental to your performance!

Do check out the article, and I hope you find it useful.

Consolidate debts to reduce your debt load

Debts can take away your mental peace if you don’t handle them wisely. Statistics reveal that on an average the number of credit cards an American household uses is 14. However, things get worse if you use credit cards even for your daily needs. You lose track of your payments and land up in serious trouble. Although there are various ways in which your debts can be controlled, you can consolidate debt to overcome your debt problems.

Consolidating debts allows you to treat all your debt accounts as one. It also makes debts more manageable. If you are not confident enough to consolidate debt on your own, you can take help of a debt consolidation company.

Few other options that can make you debt free and help you to avoid bankruptcy include the following-

- Debt settlement
- Debt management plan or DMP

If you are undecided about consolidating debts or opting for some other debt help option, you can always consult a credit counselor for the same. A credit counselor will not only help you to manage your debts better but will also educate you to manage your finances wisely.

There are a couple of other ways in which you can lead a debt free life. You don’t need a debt relief company to assist you and you just need to follow few simple steps.

- Minimize credit card usage

- Use credit cards only in case of emergency and try to use cash instead.

- Pay more than the minimum balance each month. The minimum amount you are required to shell out is usually 2% to 3% of the outstanding balance. If you are required to pay USD$300 as the minimum amount, try to pay more than that. In this way you will not only be making payments for the interest rate but your principal balance will also get reduced in due course.

- Don’t take fresh credit and try to reorganize your existing debts to get out of debt.