HOW CAN I MANAGE AND REDUCE MY DEBT?

Fortunately, there are almost as many ways to get out of debt as there are ways to get into debt. What follows are some simple steps to managing and reducing your debt.

Assess the statistics on your credit.

• What principal do you owe on each loan?
• What’s the interest rate for each loan?
• How much are you paying in interest each month?
• Identify high interest accounts and pay those debts down as soon as possible without dipping into your emergency fund.

Contact your credit card company and discuss your situation.

In many cases creditors will negotiate plan to assist you in solving your more immediate needs. It’s possible that if you tell the company you’re having trouble paying their bill, they’d rather negotiate a lower interest rate than have you default completely. They may even waive future finance charges.

Consider your options.

Borrowing from Your Family
Borrowing money from a family member may be an option for you. However, before you do so, agree to the terms, put it in writing and make your payments diligently.

Changing Your Credit Card
It’s tempting to switch with the low “teaser rate” offers that arrive in your mailbox, but make sure that you read the fine print. If you’re looking for a low rate for six months so you can seriously pay down your principal, then an introductory rate may work well. Keep an eye on the end date of the initial period so you aren’t caught with a high interest rate. Remember to make your payments on time. Many creditors will end your teaser rate if you’re late on any payments during the introductory period.

Credit Cards

Consumer Loans
With the growing number of bankruptcy rates, these fixed rate and fixed term loans are gaining in the popularity polls over credit card changeovers because they offer more stability.

Wachovia Consumer Loan Products

Student Loan Consolidation
A Federal Consolidation Loan from Wachovia can combine your existing federal student loans into one new loan with a reduced montly payment and a fixed interest rate.

Wachovia Federal Consolidation Loan

Home Equity Lending
If you have enough equity in your home to borrow against, then this is one of the smartest consolidation solutions to employ. Typically, you’ll get the best terms, potential tax advantages and consolidation power.

Wachovia Home Equity Lines

Notify your creditors if you can’t make a payment or need to make a partial payment.

When they don’t hear from you, they have to assume you’re skipping out on your responsibility. If they know you’re having difficulties, but aren’t running from your obligations, they’re more inclined to be accommodating. They’ll probably be willing to work out different repayment conditions to help you get back on your feet.

Review your credit report regularly to check for errors.

If you find errors, they can be disputed by filing a dispute form in writing, along with copies of supporting information. There is no charge for filing a dispute.

All loans are subject to credit approval, acceptable collateral and available equity, and are originated by Wachovia Bank, National Association, Wachovia Mortgage, FSB, Wachovia Financial Services, Inc. or Wachovia Bank of Delaware, National Association. All loan products are not available in all states and are subject to change without notice. Certain restrictions apply.

Only deposit products are FDIC-insured.

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