The Importance of Payment Plans in a Debt Elimination Strategy

A lot of guides tell you that when it comes to debt elimination, you really want to start thinking about making lump sum payments. However, what if you just don’t have the money? There’s nothing wrong with saying to yourself that you want to get out of debt slowly. A lot of people have gotten out of debt simply by agreeing to payments that are slow and measured rather than fast and potentially too big for your budget to handle. It’s easy to assume that you’re always going to be able to get out of the debt spiral that you’re in, but it’s another thing totally when it comes to actually doing it. Sometimes it can take a lot for debt to creep up on us, slowly growing larger and larger until we just can’t do anything about it. However, you just need to build a good plan to take care of everything, and that’s really where the payment plan comes in.

Instead of paying everything off in one fell swoop, you’re going to be able to actually get more done just by making a modest payment plan that you can stick with.

When it comes time to really put this plan into action, you always want to make absolutely sure that you’re really thinking about all of your options — including the decision to declare bankruptcy. We have to mention it even though we’re not always huge fans of bankruptcy. The reality here is that sometimes your debts really might be too big to really mess with. That’s not the time where you really get to just roll forward into a payment plan that you know will be too much for you to handle. If your debts are taking up that much room in your budget to the point where your essential living needs are threatened, you might want to think about going ahead and declaring bankruptcy. The money that you spend on a bankruptcy attorney and the filing that comes with it will be money well spent if it lets you get out of the trouble that you’re in with the bankruptcy portion.

The nice part about getting out of debt is that it really opens the door to new horizons. No longer will you be plagued by collection calls either — if you are making progress on a payment plan, it means that you’re not going to have to really worry or think about your debts. You’re going to be able to just keep paying that same amount month after month until your debts are paid. If you negotiate right, you can actually make it so that no additional interest is accrued through this process.

You never know what you can get until you actually ask for it. Yes, some people are going to want a guarantee, but this is something that you’ll need to get in writing. Never just stick to a payment plan that’s over the phone. Be sure that you really do take the time to write the appropriate letters to the appropriate department. If there is a reason why your payments haven’t been coming in lately, say so! The collection agency or even your original creditors just want to be paid. If you are going to be working with them instead of against them, they’re going to be a lot more likely to work with you. What usually happens is that people try to duck and dodge until the collection agency has no other choice but to make a lawsuit against you. You don’t want that at all.

The right choice is a payment plan that fits into your budget. If you need help with this, there are plenty of non-profit credit assistance agencies that can get you back on the right track — why not get started today?