5 Debt Management Tips for Those in Severe Trouble
Managing any amount of debt can be a little bit tricky if you aren’t familiar with the ins and outs of financial responsibility but when you get seriously in the red it can be a serious nightmare. If you are having trouble making even minimum payments on your debt balances, it may feel as if there is no hope of dealing with your debt. However, there are tactics that you can use to climb out of debt no matter how big the debt is. Let’s take a look at your options to achieving financial independence.
Talk to a Nonprofit Credit Counselor
Before filing for bankruptcy, you may be required to attend a credit counseling session. If you want to talk to a debt relief expert in the hopes of avoiding bankruptcy, make sure that you visit a nonprofit agency that has less of an interest in making money and more of an interest in helping you. They will be able to take an intimate look at your finances and offer some guidance that, if followed, can help alleviate financial woes in even the most desperate of situations.
Create and Stick to a Budget
If you enroll in a debt management plan or go through credit counseling, you may be given a budget that will help you meet your debt obligations. Alternatively, you may create a budget that works for you in the short or the long-term. Once you have a budget in place, it is important to stick to it. Otherwise, you may create more debt for yourself or fall behind on your payment plan. While there may be some drawbacks at times from emergencies, you should be aware that this is a lifestyle change not just a passing alternative to your wallet for a while.
Cut Up Your Credit Cards
Those who suffer from credit card debt should take the step of cutting up their cards. This makes it more difficult to use the cards in retail locations and when shopping online. Instead of putting debt on a credit card, you can reel in your spending by using cash or a debit card. Credit card companies are notorious for hooking those with weak wills into their web of debt recirculation. The interest rates applied each month for unpaid credit card debt can leave families financially broken so make sure you take every precaution when dealing with your credit cards.
Bankruptcy May Be Your Best Option
Bankruptcy may be the fastest and easiest way to get rid of your debt. In a Chapter 7 bankruptcy, your debt can be discharged with few questions asked in a matter of weeks. Getting help from experts like Exelby & Partners Ltd can really make this process a lot easier. However, you should be aware that your credit could take a hit for up to 10 years.
Address Outside Issues That May Cause You to Spend
Some people spend money because they are trying to feel better about themselves. If you suffer from low self-esteem or otherwise use shopping to cover your anxiety, it may be a good idea to talk to a therapist. Addressing outside issues that cause you to spend can have a positive effect on your personal life as well as your finances.
If you are in severe debt trouble, you should know that you can turn things around if you are willing to work at it. By asking for help, establishing a budget and getting rid of those credit cards, you may be able to get rid of your fiscal woes and live a financially independent life.
Share this:
Category: Debt
