Did you know about debt elimination? The elimination is a change in the amount of debt that allows you to be free from debt bondage. Debt elimination can be prefixed with better budgeting and accompanied by three of the following:

  1. Changes from high interest rates into lower interest rates
  2. Changes in the payment schedule
  3. Reduction of the amount of money to be paid

If you are experiencing severe problems in the repayment of your debt then you can take the following three ways:

  1. Bankruptcy
  2. Debt management
  3. Consolidation of debt

Some people may see bankruptcy statement as the easiest way to remove all their debts, but they do not realize that by filing bankruptcy they will only bring bad effects on their credit in the long term (can last for years).

If you want to do a debt management then first of all you should be aware that this step does not produce significant changes, you still can not reduce your debt because you just do some light adjustments.

The third step is debt consolidation. In general, debt consolidation is an effort to combine multiple debts with high interest rates into a single loan with a lower interest rate. By consolidating debt then you will only be dealing with your debt consolidation company. You will only pay one monthly installment with a low interest rate. This step is often recommended by many financial experts to anyone who is deadlocked in pay off the debt.

Consider your credit score

Credit score is an important parameter to assess the extent to which you can step to obtain new credit. Credit score is also the foundation for you to determine your ability to pay off the new loan. Make sure you understand your credit score so that you will not be stuck in the same hole. If you have a good credit score then you might be able to apply for a new mortgage with an interest rate of 0%. Of course, new credit with an interest rate of 0% will lengthen your breath, but you still should not be complacent because the waiver is the first step of the destruction.


Now is the era of the Internet where you can obtain as much information as what you want. You can find a variety of information related to how to obtain an interest rate reduction by consolidating debt. You can search via Google and other search engines for information about best debt consolidation loans. Of course the first step you should do is to contact your creditors. You need to tell them about all the factors causing you to fail in paying your debts on time. And if you feel difficulty in negotiating due to your experience and knowledge then you can contact a third party to bridge the gap between you and your creditor.


• Try not to borrow using your house as equity because you can lose the house if you cannot pay the debt on time.
• Do not use cash from retirement savings to pay unsecured debt because this is one form of financial suicide.