If you feel overwhelmed by debt, a good place to begin taking care of your uncomfortable situation may be with a bad debt estimate. In so doing, you will know better where to begin chipping away at the bad debt that hinders you. One way to get your bad debt estimate is to take a careful look at your finances on your own, but there are also debt advisors that can help you determine your bad debt estimate.
First of all, though, what is bad debt? According to law.com it is ?an uncollectible debt." However, while many talk of good debt being a secured mortgage, for example; the opposite would naturally be all of the remaining debt a person could have, including most prominently credit card debt. For the purpose of this article, we will treat the former two thirds of the phrase ?bad debt estimate? as non-mortgage debt.
If you have a high bad debt estimate, you may need to consider working with a debt counsellor who can advise you on practical steps to take towards lowering your bad debt estimate, as well as on debt settlement, debt relief, debt consolidation, and bankruptcy.
It may be advantageous to begin by filling out a spending log. Most credit counsellors who have your best interests in mind will have you complete this enlightening exercise to get a better understanding of your bad debt estimate. You can find many easy-to-use templates online. With any spending log, it is suggested that you spend the better part of a week writing down all money that is spent, including where and how much. After this week, you should be able to identify trends and see where you can tighten the money belt. Many bad debt specialists will also suggest initiating contact with your creditors. A persistent phone call to a creditor, before they persistently call you, with an explanation of your situation and your desire to repay the loan, may persuade them offer some help, by lowering interest rates or suspending payments.
If, however, you feel as though you personally cannot come up with the tactics to lower your bad debt estimate, there is help available. If you decide to enlist the help of others, however, do your research. Many companies that offer advice regarding debt management, debt relief, debt consolidation, and insolvency charge hefty fees. Before handing over your personal information, you will want to research how the suggested bad debt estimate reduction plan will affect your credit report.
If you are suffering from bad debt, you are not alone. There is a lot of informative literature and useful help available to those willing to do some work on their bad debt estimate.