Prioritizing your debt is the vital first step to...Reduce My Debt!
If you're suffering with severe debt problems, then reducing your debt is your number 1 priority... But how do you choose which debts to pay first? At this point your definitely struggling keeping your debts current. Right now you can only reduce some of your expenses, from your available income. This means you have no alternative but to delay paying some debts or not paying them at all.
When you see that you don't have the money to pay all of your debts when they are due, you're going to have to make some difficult choices when it comes to which creditor you should pay first. Your place of residence, your public utilities, your auto, and even your family possessions could be at risk.
Making the decision to reduce my debt...By taking on more debt is only a short term solution that can develop into major problems down the road. Rather than delaying or getting rid of certain debts you have to repay, you might be enticed to take on more debt so you can repay your debts. This is normally not a good idea. You can choose some to get some Debt Counseling to help you in getting some Clear Debt Solutions in place as soon as possible.
Your primary strategy in coping with too much debt is choosing which debts you should pay first...which ones you can decline to pay...and which debts you can put off until later.
The first in line creditor to pay isn't necessarily the creditor who hollers the loudest or the most frequently. Creditors who shout the loudest oftentimes do this simply because they have no other means to get the money owing them. Of more concern are creditors who not only threaten you , but who can in reality take fast action against your home, your car, or any other valuable asset you may own.
Pay back creditors that could take the fastest action to hurt you and your family...Not those creditors who are yelling the loudest and phone you the most. This will reduce your debt without having to lose any of your valued possessions.
You should apply your fixed resources to what is most needed...usually food, article of clothing, your home, and power and heating. Regrettably there's no magic trick to use to decide the order in which you should pay debts. Everyone's position will be different. Some have been successful using Debt Consolidation and Management, but keep in mind that not all of these services are created equal...Research the company before signing any papers.