Having too much debt can cause undue stress and it's important to get it under control at the first sign of trouble.
Here's what NOT to do to get out of debt:
- Don't close your credit accounts. By all means cut up the cards but don't close the accounts or transfer the debt into one account. This will negatively affect your credit rating and score.
- Don't use home equity to pay off debt. You are putting your home at risk and you need to live somewhere while you are getting out of debt and even after you are out of debt.
- Consult a Credit counseling Agency. In many cases, they will set you up on a debt management plan and they can help get your creditors to lower your interest rates or payments. On top of that, you will only have to make one monthly payment that will be distributed amongst all of your creditors.
Michelle Howard Smith is President of Reviyve LLC, a distributor of stress and alternative pain relief products. Subscribe to the Stress Less Newsletter to receive stress management tips, alternative health info and exclusive offers for subscribers only.