How to Prepare Yourself for a Potentially Really Brutal Debt Ceiling Fight in 2013

Money is such an emotionally charged topic that many people try and avoid it until it really matters. Inevitably, many of us will have to deal with our piling debt. One solution for dealing with it all is debt settlement.

Read on to find out more useful tips by Consolidated Credit that could keep you from getting saddled by credit debt in the coming year.

1.     Reduce Interest Rates If Possible

Almost every student loan lender has some kind of interest rate discount for people who set up direct deposit. The discounts are usually not huge, but they can help you save a lot of money in the long run. It would also be good to check with the lender to see if they have any other interest rate deductions. Lenders are often able to reduce the interest rates based on factors like having a high credit score or having a history of on-time payments and even if they cannot, it doesn’t hurt to double check.

2.     Loan Consolidation

In some cases, loan consolidations can be real life savers. A person can also reduce interest rates with loan consolidation. A person will need to pay close attention to the effect it will have on all the loans.

3.     Bigger Payments

It does sound obvious, but it still deserves attention. Sure, the easiest way to pay off a loan faster is to simply pay more each month. But how much more should a person pay? And will the lender accept the increased payments? These are important questions that need to be answered.

4.     Earn More To Pay Back The Loan

Of course, it’s hard to make larger payments towards a loan if you don’t have additional money in the first place. Taking up a second job is the best way to earn extra cash that can then go towards paying off the loan.

5.     Budget Better

To budget your expenses is always going to help in the end. Make a monthly budget and try not to over- spend. Your budget will be the one thing that will help guide your way towards paying off the loan faster.

6.     Save Money

It is extremely important that you save money. Without proper savings, you will definitely find it harder to pay off your loans or credit debt.  To accomplish this, it will help to save money in every aspect of your life, from going to the grocery store to visiting restaurants on weekends. Consider carefully the price of every item you purchase and ask yourself if you really need it.

7.     Give Yourself A Goal

If additional income is not being generated, it is okay to compensate by putting monthly expenses like utility and grocery bills on the credit card. But make sure to make your monthly payments on time to avoid credit debt. Is important to have the right information about credit debt and how to manage it. If you’re looking for advice on debt matters or even a free debt management plan PayPlan offers a wealth of information for people struggling with debt issues.

8. Be Realistic

The worst way anyone can unknowingly sabotage their own debt-free goals is by considering themselves to be perfect and trying to accomplish difficult outcomes in short time periods. When you set unrealistic expectations for yourself, chances are you will fall short and be disappointed

9. Track Your Spending

One solution is to track your spending. If you use a proper spending plan (aka budget), it will help you make frugal choices. To be successful with your goal, you’ll need to act based on the budget you find yourself on.

10.  Understand Your Interest Rates

Most of us have taken out loans at some point in our lives but we often neglect to understand how the interest rates work. Whether your debt consists of student loans, credit cards, an auto loan, a mortgage, or all of the above, devote some time to reading the fine print on your statements so that you understand exactly what you’re paying each month and why. One solution is to identify the loan with the highest interest rate and put it in your cross hairs first.


Inevitably, many of us will have to deal with our piling debt. One solution for dealing with it all is debt settlement. These practical ways should help to evade or at least cushion the fall. Otherwise, the muscular debt ceiling is sure to slice us all from dimple to duodenum.

Author’s Bio:

This article is composed by Elaine McPartland who is associated with “Consolidated Credit” as their community writer. She has an expertise in writing articles related to debt consolidation and how to pay off debts easily and smoothly. You can add her at her google+ profile