Here is a primer to some basics on the art and science of
debt settlement:

1. Assess your financial state objectively.

The heart of any debt settlement management plan is realistic information. Many indebted individuals get caught up in overly-rosy speculations of how the future might turn out if things “just go their way for once.” For instance, a struggling homeowner may believe that if she catches a break at work, she might just get that “big raise.” She can then use the extra money to avoid foreclosure on her home. Her dreams of a bigger payday may or may not come true. But if she “assumes the best” when planning and then falls short of that high bar, she’ll no doubt feel worse about her situation and wind up even closer to foreclosure.

Your goals at this point are twofold: 1) open your eyes to how much money you owe, and don’t leave any debts out; 2) gauge how much money you realistically expect to bring in based on a conservative outlook.

2.There is no need to walk this road alone.

Contrary to the stereotype, most indebted individuals are extremely hardworking and smart. But don’t let your pride deny you opportunities for financial resilience. Unless you work in the debt settlement industry, you likely lack knowledge, skills, and experience in this domain. By working with credentialed experts to budget, manage creditor requests, and consolidate your debts, you can make the process far more efficient and less painful.

3.Educate yourself about finances.

Given how much time most of us spend at work (earning money), and how much of our lives wind up dictated by our financial circumstances, it’s truly astounding how few financial skills we possess. To live debt-free, you need not master the markets like Warren Buffet. Just read, and ask people who’ve succeeded with money how they achieved their successes. Here are some resources to get you started:

• Robert Kiyosaki’s book, Rich Dad, Poor Dad, can introduce you to basic ideas about equity management and wealth building.
• Stephen R. Covey’s classic book, The Seven Habits of Highly Effective People, can explain how and why strategic planning really works.
• David Allen’s book, Getting Things Done, can help you figure out how to clear away clutter in your life and focus on the important things.