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Before a consumer needs a debt service provider, there exists a period of time before the debt free fall begins. During this period consumers should follow steps that will help them avoid a debt problem, and consequently the need for a debt service provider.
- Always pay on time in order to avoid late fees and extra interest being added onto an account. And if you have the available funds, pay more than expected in order to pay off the debt sooner and eat away at the capital.
- If paying debt is becoming a problem, generate extra income by selling unnecessary items or taking on an extra job. Using this money to close smaller accounts will free up more income and take away the stress of a tight budget.
- Budget carefully by making debts a priority. By getting into the habit of paying debts first, there will rarely be a month where debts cannot be paid. And do not be afraid of your creditors; approach them if you have a problem. They can be more reasonable than you think.
- Rather save up for luxurious purchases, it is far better to put the money that you would spend on debt repayment into a savings account every month. In the long run you will save money and pay no interest or hidden fees.
By being careful and considerate with your finances a consumer can easily pay off debts and never need debt services. All it takes is some careful planning and a few minor sacrifices.
Article written by: Andrea van Tonder 04-2013