Living paycheck to paycheck is a severe financial hardship that many couples face today. Not only can the burden of debt be a significant source of financial stress, but it can also seem almost impossible to overcome, especially when each paycheck goes straight to covering bills, groceries, and minimum payments on loans and credit cards. However, there are strategies you can use to help stop living paycheck to paycheck, get out of debt, and ultimately have money left over at the end of each month. One powerful method of tackling this issue can be debt resolution.
What is Debt Resolution?
Debt resolution is the process of negotiating with creditors to reduce your total outstanding debt. It’s an alternative to debt consolidation loans, which involves taking out a new loan to pay off existing debt while potentially reducing the interest rate.
While debt consolidation merely shifts the burden from multiple debts to one consolidated debt, debt resolution aims to reduce the overall debt by negotiating with creditors. This can result in a lower outstanding balance, helping make it easier to pay off your debt and achieve financial independence.
How Debt Resolution Can Help You Break the Cycle of Debt
Breaking the cycle of debt when you live paycheck to paycheck can seem daunting, but following a debt resolution program could make it achievable. Here’s how it can help you get out of debt:
1. Reducing What You Owe
When you work with a debt resolution company, they can work towards negotiating a lower outstanding balance with creditors on eligible debt. This means that paying off your debts can take less time and cost you less, leaving you with more cash in your pocket.
2. Creating a Manageable Debt Repayment Plan
Debt resolution programs include a plan for repaying your debt over time that typically lowers your monthly payment. This can make your monthly bill more manageable. When resolution agreements lower the balance owed, interest can stop accruing on what you owe. With interest curtailed, your monthly payments can finally make a dent in your debt.
3. Practice Good Financial Habits
Debt resolution programs encourage you to budget carefully and unlearn any bad financial habits that may have contributed to your debt. Building good habits like tracking expenses, automating savings, and avoiding new debt will help you avoid falling back into the cycle of debt and keep your finances secure in the long run.
Deby Payoff Worksheet
Download your copy of the worksheet to estimate how much money to put toward your debt each month and how long it will take to pay off.
Taking the First Steps to Achieve Financial Security
Debt resolution can be a powerful tool for breaking free from debt and reclaiming your financial future, but you have to take the first step! Here is how to get started:
Step 1: Talk to a Consolidation Specialist to discuss your financial situation
Step 2: Enroll in a debt resolution program
Step 3: Follow the program steps and work towards financial freedom!
Debt resolution can be a life-changing solution for couples looking to stop living paycheck to paycheck and finally pay off their debts. By tackling the issue head-on and committing to meaningful changes in your financial habits, you can break the cycle of debt and look forward to a more secure and stable future.