Monday, December 7, 2015, AM | Leave Comment
When heavily in debt, some folks can’t seem to see the light at the end of the debt tunnel. They end up so frustrated and feel so helpless that they bury their head in sand, so to speak, and hope debt will go away by itself.
We all know by being passive about debt, it’s not going to disappear. On the contrary, it keeps piling up to the point that it spirals out of control.
Debt collection agencies keep calling day and night. Your life is so miserable you start thinking of doing something that for you was unimaginable just a few years ago. You file for bankruptcy.
You can outsmart and minimize effects of bankruptcy in your financial life by avoiding the same mistakes that landed you in bankruptcy court.
To remain passive and not do anything about your debt is the worst decision you can make in your financial life.
However bad you think your situation is, you must take control in some ways that you can begin to solve your debt problems.
Often you would feel so overwhelmed that you would think you are the only one with debt problems. But you are not alone. Millions have the same problem.
That’s why if you have noticed the ads about debt in various media, they are increasingly on the rise.
The ads-guys know it’s a huge problem in the nation. But you have to be careful whom to choose.
No matter what you do to select a debt solution company, don’t pay upfront fee. That is a big and bold NO NO and you must avoid it.
What you can do to handle debt
First off, you need to take a good look at your financial situation. Don’t let anxiety attack you. Be active. For example, if you missed a payment of your credit card bill, it’s not the end of the world and it’s certainly not the end of your finances.
Call up the company and just negotiate with them. They are keen to find you a solution. Remember they don’t want to lose you. In most cases, credit card debt is unsecured debt. They are afraid if you file for bankruptcy, they would lose the money.
You should always contact your creditors if you are struggling to meet your debt obligation. Humans are working for these companies, just like you and me. They may be able to restructure your debt, a new repayment plan, have penalty charges rescinded.
So give them a call yourself. You don’t need a professional – a lawyer or the folks ringing up the ads in your ears continually. Do it yourself. You would be amazed what wonders you can do. A professional should be your last resort.
Serious Debt situations
If your debt situation is a lot more serious, then you must talk to a professional from a reputable company for debt consolidation.
If consolidation is not an option – maybe because of poor credit or lack of collateral – then there are still other options available.
Make an appointment to see a debt adviser at a charity organization. They will help you explore to improve your finances.
In any case, don’t continue to wait for a miracle to happen. You are the one who can make miracles happen.
Decide and then make a plan. Don’t let your old habits get in the way.
If you talk to finance and debt problem gurus and there are so many, they will tell you one or more of the following:
Pay off the credit cards that have the highest interest rate.
Make a list of all those you owe. Make plans to repay them. Many creditors would be willing to take a payoff which is less than your balance.
Stop using your credit cards while trying to get out of debt.
Follow these and other steps you will find in this blog and others and they will help you get out of debt faster than you can ever imagine.
Everyone gets into debt once in a while. That has become a part of our financial life. It might be okay.
What’s not okay is falling into the death trap that you cannot easily get out. Don’t let debt spiral out of control. It’s hard to swim neck deep in debt.
However, when some folks realize they are close to drowning in debt, they keep borrowing to pay off the old debt but they keep getting in the debt shit deeper and deeper.
In a Nutshell
Whatever route you decide to take to get out of debt, remember it’s only by taking charge of your financial situation that you can start to improve and solve your debt problems.