All the information, articles, and tools that you need when facing debt and bankruptcy!
Wednesday, March, 10th, 2010
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All the information, articles, and tools that you need when facing debt and bankruptcy! Wednesday, March, 10th, 2010 |
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Debt Problems - What to Do You are behind in your payments, the calls have begun, and you are stressed. Whatever the reason, layoff, medical bills, or poor judgement, sit down and see where exactly you are. Don't wait. Debt is like a visiting relative that stays too long, neither one will go away unless you do something about it. You have to see what it is doing to your life and realize it isn't worth it.Step one, take the credit cards out of your wallet or purse and either put them away or if you can't trust yourself, cut them all up but one. Give that one to a trusted friend or relative that can say no to you. That way you have an outside source to better judgement what warrants an emergency use of the card. Step two, immediately call your creditors and explain the situation. Just the notation that you called in their computer files will help you later on when you decide which course of action to take to get out of debt. Ask for an extension or interest only payments if you are facing a temporary lack of money. For longer term payment problems ask the creditor what can be done. Most large creditors (credit cards, auto loans) have special departments to help those sincere in paying the debt. Step three brings you to the time of decision on just how you will overcome your debt problems. If you are known as a good talker and have the dedication and time to invest in dealing with multiple creditors, then you may be able to do it yourself. Always be polite and truthful. Don't let the stress of dealing with multiple layers of an impersonal corporation defeat you. It will probably take time to get to the right person, but remember your goal, a debt free life. If you are handling the creditors yourself but still can't find the right balance between income and expenses you can try a credit counselor. Be careful, many of these credit counselors you see advertising are not truly a not for profit organization. They will charge some kind of fee. However, a good credit counselor will not only give you tips on dealing with your creditors, but help you with preparing and living on a reasonable budget that will aid you in easing your debt problems. Perhaps the best and easiest way to start on your road out of debt is to contact a debt consolidation organization. It is easier for the debt consolidation counselors to come to agreements with all your creditors. Just your working through a debt consolidation counselor shows the creditors your commitment. Also, they have years of practice, where you are learning at your expense. Yes, debt consolidation organizations will charge a fee, but that fee should be more than offset by the savings in lowered interest and late fees. Besides, they are truly helping you in your number one goal, getting out of debt. Credit counselors want up front fees just to tell you how, not to do it for you. Whichever path you choose, remember why you are doing it, a debt free life and the happiness that being free of all that debt can bring.  |
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