Think hard about such a decision before you declare bankruptcy because you are stuck with several debts. There are good debt management techniques that you can opt to use to help you ease your way through your debts.
The process is not easy. Financial problems are never easy. This is especially true if you owe various companies and people lots of money. The situation will worsen once you are dealing with the situation and find out that you don’t know where to get the money to settle your dilemma.
Declining bankruptcy must be thought hard about because such an occurrence will be recorded on your credit report for 7-10 years. This will gravely negatively affect your credit status. What you can do is find the right solutions to your problems. You can plan how you will settle your debts. And you must abide by the rules that you set for yourself to follow.
Here are only some suggestions for preparing to manage your debts.
- Do not add to your problems by acquiring more debts. This is the last thing that you need right now. You may still be tempted to swipe your credit cards now and then. But resort to that only in emergencies. If you have to change your lifestyle to buy what you can only afford, then do that. It is better to live by your means than to live in fear of a credit collector coming to your house, ringing your phone, and knocking on your door.
- Your goal must be to reduce the number of payments you make for your debts as time passes. To achieve this, you must religiously settle your debts little by little. Whatever extra money you get as bonuses from your work or tokens from others, you must immediately consider your debts first. Allocate enough money to this endeavor. You want to get out of this rut as soon as possible. But what are your reasons why you want to do that?
The wrong answer to this question is that you are settling your debts now to start using your credit cards to buy more gadgets or whatever luxury you want to acquire. Your right answer is that you want to start living according to what you can afford.
- You can call your creditors and ask for help. You can tell them your situation, longing to escape it. You can ask them for the right repayment schemes that they can offer you. This way, the interest on your debts will stop increasing. But if they agree on such terms, you must prove it worth it all. You must pay for whatever amount you’ve bargained for every period it must be done.
- You can also hire a pro to handle this task. You can settle for this if you can no longer handle the situation. You can ask for the help of credit counselors to manage your debts and teach you how never to get into this situation.
Part of good debt management is self-control and sacrifice. You have to remember that all these will be to your benefit. Try never to make the same mistakes concerning money once you have finally escaped your dilemma.
While we have examined budgeting previously, it is vital to use your budgeting along with a debt reduction strategy and imperative that you cease any new debt. At the same time, you focus on reducing the debt you have. For those who got my BUDGET TOOL, here is the accompanying DEBT REDUCTION spreadsheet that will aid and assist anyone in getting on top of their finances.
For anyone in the metro Nashville area, feel free to contact me directly. And for those outside the middle Tennessee area, seek out a qualified fee-only Registered Financial Consultant (RFC) near you for assistance.
