Debt Elimination

Written by Abby Luttrell
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Debt elimination--what a concept. If you've been through college, or graduate school, if you have kids, if you're paying a car on time, or if you've bought a house, you have debt. There's no way around it. It's a fact of modern life.

But your debt can be manageable...or it can create so much stress and insecurity that it can ruin the quality of your life, and even your health. Is it worth it? No.

Reducing Your Unsecured Debt

Debt elimination is possible with consumer credit counseling. A debt assistance program will separate your secured debt (paying for your car and your house) with your unsecured debt (your credit cards). You'll always have your mortgage payment or your car payment, but you can reduce your unsecured debt to zero.

Debt consolidation companies will create a debt consolidation plan tailored to your individual finances. These companies can talk to your creditors to lower the sometimes outrageous interest rate of 22-25% to a manageable interest rate of 10-12%. With these lower interest rates, they can then negotiate a monthly payment that is much lower than what you are paying now. If you stick to this program, debt elimination can be a reality in 12 to 24 months.

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