You first need to know what’s on your credit reports. Not only will we be working to reduce your debt with this process but we’re also going to work to increase your credit score.
1) Download your free credit reports or get your TransUnion report
2) List out your debts, monthly payments and interest rates
List your debt in order of interest rate, from highest to lowest. If you can find any extra money in your budget, you’ll want to make extra payments to the debts highest on your list.
A debt consolidation loan is one of my favorite debt relief tools. A consolidation loan means you take out one large loan to pay off your smaller debts.
If you still cannot make your monthly payments even after looking at a consolidation loan then it might be time to consider debt negotiation.