Getting Started

The very first item needed to declare your independence from debt is to resolve to do so sincerely. To many consumers, this will be the beginning of a new approach to day-to-day life. Once committed to chucking the plastic, the rest is a matter of discipline.

  Order copies of your credit reports. This can be done through the three credit reporting agencies or through AnnualCreditReport.com, a free source for credit reports. Review each report of accuracy. Should there be errant items, dispute them according to the reporting credit bureau guidelines. This will help to improve your credit score during the process of eliminating balances.

  Determine your debt-load. Debt relief must start with an honest assessment of one's finances. Rounding numbers and guessing balances won't provide an accurate picture of just how much is owed. Next, determine your monthly net income, not your gross income. The difference between the two will be substantial and will help to establish a viable plan for becoming debt free.

  Formulate a plan. There are differing methods for retiring credit card debt. One is to attack the card with the highest interest rate, regardless of the balance. Another is to focus on the account with the highest balance, regardless of the interest rate. And yet another method is to concentrate first on the smallest balance, then moving to the next largest debt--known as the "snowball method" or "snowball strategy".

  Put your plan into action. Cut up your credit cards and do not activate any new cards. Call each credit card issuer and cancel your account. Remember, cancelling your account won't make the balance disappear, but it will prevent you from running up any more debt. It also has the added benefit of instilling a sense of accomplishment, making your debt-free life seem completely possible.

Seek Help if Necessary

It's not uncommon to become overwhelmed when trying to declare independence from debt. Engaging the services of a debt relief firm will not only greatly bolster the chance of success, it will allow you to continue on with life as someone other than you focuses on ridding debt.

Seeking the assistance of an experienced agency will make the task more easy as the firm will have "turn key" approaches to help your declare your independence from debt.

Dealing with Debt Collection Agencies

Consumers behind in their credit card payments will likely still endure debt collection harassment--even when on a repayment plan. It is your duty to inform any collectors of your repayment arrangement. Should any collectors continue to contact you, you can mail a cease-and-desist letter to said offender.

Declaring your independence from debt won't be a simple task and won't be accomplished overnight. It will take time and effort. To make the process simpler, less obtrusive and worry free, seek the assistance of a reputable debt counseling/relief agency for guidance.