DIY Debt Relief
If you are a do-it-yourself type of person, there are numerous debt relief tactics to choose from. These different strategies can help:
Pay down debt faster
Save money on interest
Improve financial skills
Lower monthly repayments
Popular Relief Tactics
Debt Snowball – Debt Avalanche – Consolidation Loan – Creditor Negotiation
Is DIY Relief Safe?
If maintaining repayment obligations DIY options are very effective
DIY Success
Ideal for those who can stick to a plan and make more than the minimum repayment
How it works
What exactly is DIY debt relief?
DIY debt relief is tackling debt on your own whilst utilising one of many debt reduction strategies.
Most debt reduction tactics lend themselves to DIY solutions. The decision for doing it yourself or enlisting the help of a professional, is based on comfort level. Some are happy to tackle things on their own whilst other are not.
What are the benefits?
There are numerous benefits in tackling debt on your own, examples include:
- Its free – no fees for service from professionals
- Self satisfaction and further development of money skills
- Potential protection to your credit score
- Have a visible end date
What are the drawbacks?
DIY isn’t right for everyone. Below are some considerations:
- Can be stressful and demanding
- Requires self discipline
- May not be feasible for those dealing with hardship
- Certain tactics may require a qualification process (consolidation loan, balance transfer, etc)
- If negotiating with creditors, it can be difficult
DIY Debt Relief Considerations
Debts that can be included
Any type of debt can be included into your debt reduction strategy – examples include:
- Credit Cards
- Store Cards
- Payday Loans
- Personal Loans
- Medical Fees
- Outstanding Bills (utility, phone, etc)
- Vehicle or Home Loan
- Tax Debt, etc.
Different strategies work better for different debt types, compare pros and cons of each prior to implementing.
Popular tactics for DIY debt relief
Below are commonly used solutions for various debt types and situations:
- Debt snowball or avalanche (no new credit required)
- Refinancing (for home owners with equity)
- Debt consolidation loan (for those who qualify)
- Credit card balance transfer (for those who qualify)
- Formal or informal debt agreements (for those who qualify)
Budgeting will be at the core of any debt reduction strategy.
How much could debt consolidation save you?
Current Debt
$
$
per
Total Debt$0
Total Repayments$0 per month
New Consolidation Loan
Years to pay back
New Monthly Payment$0
You could save$0 per month
FAQ's
Need some help?
How to negotiate debt repayments with creditors?
A great starting point is to first figure out what you can afford to pay back along with evidence of this. An example of this could be providing information on a serious change in financial circumstances such as job loss, relationship breakdown, illness, etc.
Then contact your creditor(s) and ask for the department that deals with financial hardship. They can provide you with options based on your circumstances.
What is the debt snowball plan?
This debt snowball plan is the process of using a rollover method for paying down debts in the order of smallest balance to largest. As soon as the first debt (smallest balance) is paid off, use the freed-up repayment amount to pay down the next debt and so on. Learn more on the debt snowball method here.
What is the debt avalanche plan?
This debt avalanche plan is the process of using a rollover method for paying down debts in the order of highest interest rate first, down to the lowest. As soon as the first debt (highest interest rate) is paid off, use the freed-up repayment amount to pay down the next debt and so on.
Is it better to use a debt relief company or do-it-yourself?
There are pros and cons of each and this is determined by what a person is comfortable with along with their own specific circumstances.
If using a company, be sure that the costs associated with the service are transparent and there is a clear benefit to you. A fee based service shouldn’t put you into further debt.
What is the most popular DIY debt relief solution?
Firstly, all debt relief solutions incorporate a budget, this alone can solve many problems. Two highly popular DIY options which require no new finance are – debt snowball and debt avalanche.
Other popular solutions that require new finance include debt consolidation loans and credit card balance transfers.
Tackle Debt With The Right Solution!
Everyone’s debt is different, get proven relief strategies to determine what is right for you.
- Tell us about your debt
- See what you could save
- Take control of debt