If you have been trying to become debt-free and are not having any luck doing it the old-fashioned way, it might be time for you to get creative. There are a lot of debt solutions available for you to use, but you might be able to become debt-free on your own. To do this, you will have to build up the confidence to begin negotiating with your creditors, and here are some tips to help you successfully create a plan that will help you get rid of every debt you owe.

Make a List

A lot of people owe money to a lot of creditors, and many of these individuals do not want to make a list to see exactly how much they owe. They are afraid the results might be to frightening, or that they owe much more than they actually think. If you feel like this, you will need to face your fears by creating a list of every debt you have.

This list will help you understand exactly where you stand with your debts, and it will be your starting point for negotiations. Do not include your typical monthly bills on this list, such as your mortgage, car payment, and utility payments.

In addition to making this list, you should also create a list of your regular monthly expenses as well as your monthly income. When you have this list, you can subtract your monthly expenses from your monthly income to determine how much money you have to work with for repaying the other debts you owe.

Create an Offer

The next step is to create an offer that you will talk over with your creditors. You can base the offer amount on the extra money you have leftover each month after paying your regular bills and on the number of creditors you owe. As you create your offer, keep these tips in mind:

• You might be able to settle your debts – Settling your debts will allow you to pay less than what is owed. Many creditors will accept this offer simply because the alternative is bankruptcy. If you cannot work out plans with your creditors, you might have no other option besides bankruptcy. If this happens, your creditors get nothing, or very little.
• You could ask for interest rate decreases – If you believe you can afford to repay your debts in full, but need a little help, ask your creditors to drop the interest rates. This will stop your balances from increasing each month, and your payments will have more of an effect on your actual balances.
• You could request longer terms for the debts – Whether you ask for a settlement or not, you could also ask the creditors to extend the length of your terms. By doing this, your payments will decrease, and you may be able to afford to pay all of them off.

If you try these tips during the negotiations with your creditors, there is a chance you will come up with agreements that work for you. If not, you could look into an alternative option.

Go With a Professional Plan

There are many different types of programs you can use to get out of debt, and these are offered by professionals in the debt settlement industry. Of all the options available, you may be limited to choosing one of these two:

• Consumer proposal – A consumer proposal is the professional way to handle debt settlement. It allows you to pay less than what you owe for your debts, but you will have someone assisting you with this.
• Bankruptcy – If a consumer proposal is not right for you, filing for bankruptcy is always an option.

You can seek help for either of these options by visiting a bankruptcy trustee or organization that offers debt settlement plans.

If you continue trying to get out of debt by simply making your normal payments each month, you may never pay everything off. Instead of living with debt, consider taking action right now to do something about it. To learn more about your options, contact a debt settlement company today.