People who are facing serious Debt issues most often feel alone and isolated. The truth is, there is no escaping debt problems. Debt can fall to people of all income levels. Someone who might make thousands of dollars can be as financially broke as someone who makes less than a hundred dollars per day if they are not able to control their spending. In fact, it doesn’t really matter how much your income is. What matters is that you are able to get out of this nasty situation you are in as quickly as possible.
Majority of citizens become at first, in denial of their situation. They think that it is not a big deal to be in debt. They tend to rationalize and tell themselves that their credit is still in a healthy state. Often times, it would take an eye opening situation to finally wake them up of the tangle they are in. This may be in a form of a lawsuit, a collection letter, foreclosure order, notice of bank levy or wage garnishment. When reality strikes, they often find themselves completely unprepared for the catastrophe that they are facing.
When your finances are cluttered, in dissaray and in shambles, it is hard to picture out the road to financial recovery. You have to spend time working out your real income after tax, accurate expenses and existing debt payments. It may be difficult but your best efforts would have to be changing your lifestyle to live within what you can actually afford, eliminate expenses and use the money towards debt repayment.
Your Options
However, even extreme measures can be a little too difficult and impossible to accomplish for someone who has multiple debts that is beyond any budget reorganization can resolve. What do you do when you are in the abyss? When all possible means seem impossible to accomplish?
Do Nothing
Some might think that it’s careless not to act right away when faced with troubling situation but there are times that those who are in very troubling times just do not know what to do. It’s not that they do not want to act on the situation but just thinking about their problem immobilizes them. They are not able to think clearly. If you are one of these people, don’t get stuck! Get help right away. Speaking to an expert will help you clear your mind on the situation.
Make the Minimum Payment Each Time
The biggest mistake you can do is continue on making minimum payments until eternity. Your debt never seems to go down. You do not know how or when your debt will end. If you think this is the only way to settle debt, it is not. Again, speaking to a debt expert will help you understand how you can best get out of your situation right away.
Credit Card Trap
When you are making multiple payments towards different collection agencies, you may be thinking it would be better to consolidate your debt to make one single payment each month. However, you may be falling into a trap. You may think that interest rates are lower but some offers might be turning your unsecured debt into secured debt! You might risk foreclosure or seizure of your property when time comes you are not able to pay up. Also, your situation might not be suited for debt consolidation. Careful, unbiased assessment should be made.
