Is self-help debt repayment right for me?

Is self-help debt repayment a good choice?

When comparing debt consolidation options, consumers should almost always consider the option of helping themselves. Self help is not always the best choice for all consumers, but it can be a wise choice for those with enough willpower, time, and energy.

Resolving credit problems alone is often best for individuals who are deep in debt due to temporary unemployment or unexpected, and large, one-time expense. As long as they don’t continue to add to their debt, these consumers can often manage the repayment of debt on their own.

The first step in deciding whether or not to do this on one’s own is to understand both the current financial situation and how it happened. Then it is important to do a detailed, and sometimes painful, analysis of income and expenses, to create a realistic budget and repayment plan.

Questions to ask oneself when considering whether or not to repair credit without the services of a professional:

• What free educational information is available to help me through the process? Will I read it?
• It is important for me to save fees or keep financial information private?
• Are there free services I can call or search online for advice or help if I get stuck? Am I comfortable asking for that help?
• Am I comfortable contacting creditors and asking for repayment plans or reductions of debt or fees?
• Am I comfortable holding myself, and my family, to a strict budget?
• Will I be diligent about making monthly payments?
• Will I be diligent about not adding new debts to the situation?