If your unsecured debts have spiraled beyond your control, leaving you feeling frustrated and hopeless as you struggle to make the minimum payments, take heart.
Vantage Acceptance is one of the companies that can help.
Every day we negotiate with creditors and debt collectors on behalf of our clients, negotiating with them to accept lower amounts than what you owe, sometimes as low as 40 percent of your debt. Why would they accept less? Because they know that the alternative, your filing bankruptcy, will result in them receiving nothing.
While debt settlement can be derogatory on your credit record, it doesn’t hurt it as badly as bankruptcy. In order to achieve this better outcome, you do have a price to pay: You must be disciplined in making monthly deposits into an account until it accumulates enough money for a lump sumpayment that your creditor will accept to eliminate your debt.
Here are six tips for cutting your spending to achieve that important goal:
- Make and follow a budget – At the beginning of each month, sit down list your income and expenses, paying on secured debt first. Keeping your home, if you have a mortgage, and your car, if you have a car loan, should be your top priorities, with your debt settlement account a close third. This is especially important to do so that you know where your money is going and what you can cut back spending on.
- Shop with a list – When you go to the grocery store, make a list of things you need and stick to the list. This will help you avoid buying things you don’t need, and make sure you buy what you do need, so you avoid costly trips.
- Try shopping at a discount grocery store – You can save a significant amount of money by shopping for groceries that are off-brand, store brand or generic. While it depends on the product, these items often taste just as good as national brands, research has shown.
- Cut the chord – If you subscribe to cable TV, AT&T Uverse or a satellite TV service, consider stopping. The number of options for web streaming TV has grown tremendously, to include Netflix, Hulu, Sling and Roku, and they cost much less.
- Stop eating out – This sounds pretty obvious but it can make a huge difference in your cash flow over the course of a month. You can cook at home for far less than half the cost of eating out. Save your leftovers and take them to work the next day for lunch. Avoiding restaurants also will likely help your waistline as well.
- Good as new – Stop thinking everything you buy must be new. The internet, mobile apps and attractive second-hand clothing stores (think Plato’s Closet) have created more ways than ever to buy gently used items for far less money.
Tightening up your belt might sound awful but it’s really not as bad as you might think, especially if you think about it in the right way. It can be only a temporary measure that will allow you to reach your goal of becoming debt free, although it might just teach you some permanent habits as well. What could be wrong with that?