By: Darrell Castle
A recent article on Credit.com chronicles the story of Charles Phelan, a debt settlement expert, who found himself in a load of debt, totaling more than $60,000, while counseling several others out of their debt. After seeing the need for transformation, Charles and his wife gave up their home in order to pay off the debts that had accumulated from unforeseen medical bills. By selling their home, they were able to repay their debt, move into a leased home and recreate a savings account which had dwindled.
Amazingly, Charles and his wife were able to successfully leave debt behind them. But what about those who don’t know where to start?
Charles’ story is one of hope and inspiration for debtors everywhere. The process of creating a debt reduction plan is an important step to repayment and can outline a clear concourse of action.
Creating a Debt Reduction Plan
Not all of us are credit resolving experts likes Charles, and the plans aren’t always so clear.
The first step of creating a debt reduction plan is to list out all of your bills. Noting and ranking your debt in a spreadsheet by balance, interest rate, minimum payment and the number of payments left will give you a clear view of how your money should be allocated.
Once you’ve outlined your debt, look at your income and establish an amount to allocate towards your bills. The amount ideally should be more than the combined minimum payment total of all of your bills. Categorize your debt by those that are quick payoffs, those that have high interest rates and lastly the ones with the least amount of months left.
Tackling your debt through these categories will help you to minimize debt and carve out a path for eliminating it completely.
At Darrell Castle & Associates, we want to see you succeed. While creating a plan to eliminate debt is a great step towards financial responsibility, we understand that this road is not always the best option.
Discover if Bankruptcy is a Viable Option
Our bankruptcy lawyers in Memphis can help with a broad view of your situation and help you decide on if your debt is best suited for bankruptcy. We know that getting out of financial hardship is top priority for you and your family.
Our free bankruptcy consultation will outline your major debts, and will allow our bankruptcy attorney to recommend a personalized plan of action for you.
30 years of Experience in Memphis
If you’re struggling financially and want to talk to someone with the knowhow to transform your life, then our FREE bankruptcy consultation is perfect for you.
Call (901) 327-2100 today to schedule your appointment, or fill out the form to the right of this page to have someone from our office contact you.
If you’d like to learn more about bankruptcy, there are a variety of bankruptcy articles on our website and blog, as well as important eBooks that will teach you all you need to know before filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy.