Debt Recovery & Relief
Paying off your debt means cutting your spending immediately. It may also mean talking with creditors, debt collectors, and credit or debt counselors. The following information will help you reach your goal.
Find Daily Savings: You Can Do It.
You might be surprised how quickly small expenses add up to big savings.
Some of your regular, periodic expenses are luxuries - things like house cleaning, manicures, lawn-care services - do them yourself, or do without. Trade in those luxuries for the big luxury of paying off your debt.
That expensive coffee grabbed in the morning rather than having coffee at home or at work, not ordering expensive drinks at restaurants and going out less - these are things everyone can give up or change that will make a big difference in monthly expenses.
Other items like an expensive car or apartment may take longer for you to downsize, but with planning you can. Making these changes can add up to hundreds of dollars a month or more. This will provide you with money you can use to start making a real difference in paying off your debt.
It is equally important not to take on new debt until you get your finances under control.
Sticking to a budget and contacting your creditors if you have problems making payments are the first steps on the road to dealing with your debt. Sometimes, though, they are only a beginning, and professional assistance may be necessary. Review the information under this section, and if you feel like you may need professional help, you may wish to contact the Agensi Kaunseling dan Pengurusan Kredit (AKPK) by visiting their website at www.akpk.org.my or call their hotline at 1-800-88-2575 (toll free).
Save on the Interest You Pay.
When less of your money goes to paying interest on your debt and more of it goes toward paying off the actual debt, you will reach your debt reduction goal sooner.
Understanding Secured and Unsecured Debt.Debt can be secured or unsecured.
Secured debts are tied to an asset, such as a vehicle loan or your mortgage. If you fail to make payments on a secured loan, the lender can take steps to repossess the asset, for example taking back the vehicle or foreclosing on your home.
Unsecured debts are not tied to assets. They include credit card debt, signature loans, medical bills, and debts for other types of services.