6 Sensible Tips on How to Settle Debt in the United States

Let's erase and settle your debt (image from http://www.flickr.com/photos/11121568@N06/4105722502)

     Millions of Americans each day have this thought in mind, “how to settle debt?”

     Debt is a condition that exists when there is a loan agreement. Debt Settlement is more than a one-time job. It involves strong WILL and having to accept to deal with it for a substantial amount of time depending on the amount of your debt and how many debts you have, may it be on a local bank, a financial institution or from a friend’s friend.

     Congratulations my friend if you already have that willingness to settle your debt. You’ve already won half the battle.

  

   Aside from yourself, no other than the Supreme Being, God Himself would want you to settle your debt. According to Larry Burkett, author of the book, “Dollars and Sense, what the Bible says about you and your Money,” “God’s words tells us that His plan for us is to be debt free.  The blessings of  becoming debt free go far beyond the financial area; they extend to the spiritual and marital realms.”

    

     This is clearly supported by the Bible, “The Lord will open for you His good storehouse...to bless all the work of your hand; and you shall lend to many nations, but you shall not borrow” – Deuteronomy 28:12

     On this note, we would like to serve no-nonsense tips for the Americans on how to settle debts:

1.)    Talk to your Debtor. When you do, the first and foremost your debtor would have in mind is that you’re head on in covering your full debt. The very main reason why you are doing this is if your Debtor can still cut down the interest rate or all those surcharges. In effect, this will be a win-win situation. It’s less of a burden as your chance to fully pay the debt increases and your debtor will of course get his side of the bargain.

2.)    Set a fix amount to pay the debt on the same day every month. The key to this is “willingness” and discipline. There are obvious two ways to do this: first set aside that specific amount from your regular income. Or if your regular income can’t sustain it, you can do the second thing which is to moonlight for a job where you   can consistently get the payment. You may also suggest the day convenient to you like the day after your pay day.  

A sound tip, spending less and saving more is a surefire way to escort you in your journey to debt settlement.

3.)    Increase your Financial I.Q. As what was mentioned earlier, Debt Settlement is a “will” thing. To further light your journey to Debt Settlement, it is best to strongly couple it by increasing your Financial Knowledge which also covers the topic, “how to pay your debt.” There are lots of ways to do this: self study through books, audiobooks, cds, the internet or enrol yourself to basic personal finance courses.

4.)    Tell this to your closest friend. Sharing this to your closest friend will help you in a way that they will remind you of your goal. Most of the times, if they hear, read or know of a thing or two that will help you in your successful journey to Debt Settlement, be assured that they will even tell you about it with a glow in their eyes.

5.)    Never borrow again. Once you’re out of debt, we strongly suggest that you do not fall to the same trap again. Unless that is a rare case of good debt in which case you will use the money to put an active income to your pocket. If there is no reason other than that, we strongly advise that you shelf the idea of acquiring loan once Debt Settlement is over.

6.)    Save for your Emergency and Future Fund. This is already beyond the Debt Settlement Tips, but once it’s over and you’re already used to saving that specific amount monthly, then use that amount to start creating your emergency fund (this specific of fund will be your resource just in case unexpected situations come up, as the name suggests) which is at least three to six months of your monthly income or add it up to your Future Fund or your savings.