Do It Yourself Debt Relief - DIY Debt Freedom Strategies

All debt relief efforts should begin with a "do it yourself" attitude, however most people start getting serious about debt relief far too late. DIY debt relief should begin before your first late payment, before you run up your credit cards, or start tapping into a home equity line of credit. If you are proactive with debt relief, and start taking actions at the first signs of financial trouble, then budgeting and financial responsibility should be enough to bail you out. For a do it yourself debt relief strategy, find the scenario below that best matches your situation.

Most people engage in a debt relief plan after they become financially stressed, meaning that their credit limits are maxing out, some payments may be late, and cash flow is becoming a serious issue. The strategies needed for a do it yourself debt relief plan vary considerably depending on how dire your situation is. You may even need to surrender your DIY ideas altogether and find professional debt relief assistance. Also, a combination of DIY debt relief, and professional debt relief may be your best alternative. For a do it yourself debt relief strategy, start reading the debt relief strategies below, and stop when the financial scenario becomes more extreme than your own.

Do It Yourself Debt Relief - Moderate Financial Stress

• Way of Life - Get organized, study your expenses, create a budget, track the progress of your debt relief plan every month.
• Way of Life - Cut the frill, like buying coffee on the way to work, pack your own lunch and stop eating out in general.
• Way of Life - Cancel magazine subscriptions, memberships and other costs you can live without.
• Way of Life - Reduce cell phone luxuries or limit them to need-only.
• Way of Life - Don't cut out TV unless you must, but minimize the service plan if possible, and similar for your internet connection.
• Way of Life - Rent movies or go to the dollar-theater, and skip the popcorn.
• Way of Life - Get the whole family on board. Conserver energy, water, gas, mow your own lawn, cancel maid services, and pet grooming.
• Way of Life - Stop shopping except for food, or the bare essentials!
• Way of Life - Look at 2 months of bank statements to find ideas where you can reduce debt. Some of these changes will hopefully be permanent, but most importantly, they will buy you the time you need to get back on top of your debt.
• Lowering Expenses - Check your credit score, and actively begin a credit repair process to remove inaccuracies. Better credit means better interest rates, which will help out with the suggestion below.
• Lowering Expenses - Consider refinancing your home, but make absolute sure that it will help.
• Lowering Expenses - Consolidate debt, such as through a home equity loan or credit card balance transfers.
• Lowering Expenses - Consider refinancing your auto loans.
• Lowering Expenses - If you have tax debt, contact the IRS or state, and work out payment plans.
• Lowering Expenses - Take a close look at your phone bills. If you have a FAST broadband internet service, consider replacing your traditional phone service with a service from Vonage or Magic Jack or equivalent.
• Lowering Expenses - Try living only on cash and a debt card. Stop using your credit card unless it means no food on the table.
• Lowering Expenses - Temporarily reduce 401k payments or other investments. If your investment returns less than the interest rate on your credit cards, then paying your credit cards off is the better "investment."

Be creative but most importantly be proactive. You can either make these sacrifices now, by choice, or later when the debt collectors put liens on you home, garnish your wages, and hit you with lawsuits. As unpleasant as this is, it can be so much worse. Take charge of your household, including your children, and get the job done. This is a time for tough love.

Do It Yourself Debt Relief - Significant Financial Stress

• Way of Life - Implement the "way of life" strategies listed above, under the "Moderate Financial Stress" category. Even if these savings are not enough, it slows the rate of your financial free-fall. It is a must-do, and not a should-do, or will-do.
• Lowering Expenses - Implement the "lowering expenses" strategies listed above, under the "Moderate Financial Stress" category.
• Lowering Expenses - If you rent, speak with your property owner for a potential temporary reduction in fees.
• Lowering Expenses - Sell big ticket items that are seldom used. If you have 3 cars, but you can survive with two, then sell a vehicle weighing fuel economy and monthly payments. If you have a boat, trailer, motor home, motorcycles or other items that are not used regularly, then consider selling them.
• Increase Income - Consider seeking a second job or volunteering for overtime, or have your children age 16+ seek employment. This does not have to be permanent, just until you get on top of your finances. This is NOT a good time to find "work from home" opportunities, which actually cost you more money to buy the kits, and are a big distraction.
• Increase Income - You may be attached to your job, and that is okay. But consider the option of finding a higher paying job.
• Professional Assistance - If you have been diligent with the strategies above, but you're still unable to gain ground after 3-6 month, then it is time to seek personal assistance.
• Professional Assistance - If you are a home owner, consider entering into a Loan Modification program.
• Professional Assistance - If you have over $10,000 in TAX debt, find a tax relief representative.
• Professional Assistance - If you have unsecured debt, such as credit card debt, consider entering into a Debt Settlement or Credit Counseling program.

It is going to take significant, and sometimes extreme action on your part to get on top you your finances, and chip away at your debt. Your first order of action should be to hit a break-even point, and then intensify your efforts and work for returning to a positive cash flow. Don't let the creditors stress you out, laugh at them if you have to, but don't wear it on your sleve. You're making your best effort to become debt free, and that is something to be very proud about. Don't forget to have fun in simple ways, like family picnics, parks, hiking, movies at home, and visiting friends. Financial stress can take its toll on a household, but you need to be a leader and keep it together. This is easier to do when the entire family is in on the game plan, and as a family you will chip away at debt one dollar at a time.

Do It Yourself Debt Relief - Extreme Financial Stress

If you are in this category for financial stress, there are no more bullet points for you. The strategies listed above are still sufficient. However, items above that state "consider", should no longer be considered - rather they should be done. Try to hold out as long as you can from filing for bankruptcy protection. Debt Freedom Tips recommends filing for bankruptcy only under the following circumstances.

• You are a home owner and want to keep your home. Loan modification efforts have failed.
• Your debt is insurmountable, for example you are facing a $250,000 medical bill or legal judgement against you.

Regardless of your situation, keep a positive attitude, and to do not go at it alone. You must involve your family, having them become active participants of the game plan. This is not going to be easy, but every day of inaction makes it so much harder. A personal bankruptcy filing is not the answer and it does not make things easier!