For those of us struggling with outstanding debt problems, the pressure placed on our lives by unmanageable debt can appear insurmountable. Hefty minimum payments, harassing creditor calls, and a falling credit score are all factors that lead to our feeling of helplessness.

There are several common mistakes many of us make that lead to this situation. Recognizing these mistakes and taking action to correct them can help you eliminate your debt problems for good and begin your journey towards financial freedom.

1. Continuing to Use Credit: If you are continuously adding additional debt to your current amount, you are making it increasingly difficult to become debt free with each swipe of the plastic. Leave the cards at home or even cut them up to make sure you don’t add any more fuel to the fire. Use cash for everything, and if you don’t have the cash, you can’t afford it.
2. Ignoring the Problem: Pretending that your debt is not a major problem is a serious mistake. Making the minimum payments will only guarantee that you continue paying the credit card companies for many years to come. For instance, if you have a $7,600 credit card balance with an 18% APR and only make 2% minimum payments, you’ll need 53 years to pay off your debt. Total interest-$21,731! Sound the alarm bells now and recognize the problem. The sooner you begin taking steps to address your debt problems, the sooner you can begin resolving them.
3. Failing to Consult a Debt Settlement Professional: Debt settlement professionals work with your creditors to negotiate your outstanding debts down to a manageable sum. Creditors may negotiate on outstanding debts, as they stand a better chance of regaining some of their investment by settling for a lesser amount, and debt settlement professionals know all the ins and outs of the industry. Many such debt settlement programs allow you to structure a payment and savings plan that works on your terms and within your budget.
4. Leaving a Debt Settlement Program Early: Quitting a debt settlement program prior to resolving all your outstanding debts can hurt you in many ways. First, you may lose any fee or program costs which you have already given the debt settlement company for their services. Second, if you wish to join another debt settlement program later on down the road, your previous failure to complete such a program will be a red flag to the new company, who may decide not to work with you. Third, you are still in debt! Sticking with the plan and completing your debt settlement program will allow you to use your time, energy, and finances to increase your savings rather than deplete it.

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