Debt issues can happen to anyone and when they do, they can bring about a great deal of pain and suffering, especially if you are not able to pay. Unfortunately we see this time and time again, people borrowing above their means because of the aggressive marketing strategies which financial institutions employ, leaving behind victims in their wake. Debt issues are usually known to spiral out of control very quickly and just when you think that you are managing well, everything can change. If you have found yourself under a mountain of debt, it is time take action and get out from under it. We spoke to the guys at collection agency Brennan & Clark, for some tips on how to get out of debt.
Face the Issue
If you have payments overdue and the creditors or collection agency is trying to get in touch with you, whatever you do, do not ignore the communication. Many people think that burying their heads in the sand on this issue is somehow going to help but it is really the opposite which happens when you start ignoring phone calls and letters. Missing a payment and not being able to afford it is one thing, but ignoring communications and potentially facing more charges and penalties is just foolish. Face up to your debt, speak with the creditor and explain in perfect detail what is going on with your finances.
The guys at Brennan & Clark spoke to me about how those with the dedication to pay their debts off are the ones who do so in the quickest fashion and if you want to get debt free, this is what you need to do. Dedication in this case means that you cut your spending down to the bare bones, and that you try your best to find additional ways of making money. Such is the human psyche of many, spending money that isn’t ours feels fine, but paying that money back after the event doesn’t. The fact of the matter is that you racked this debt up, and you need to pay your way out of it. Get dedicated to clearing your debt, take tough decisions and make sacrifices until that balance is cleared, you will be immeasurably happier if you do.
No More Borrowing
There are some cases whereby borrowing in order to consolidate debt may be a smarter option, especially if you are paying higher interests somewhere else. The truth is however that if you do have debt issues now, it is unlikely that you will be able to borrow money from a trusted lender with their lower interest rates. This means that if you want to borrow money to pay off a debt payment, you will end up in some unscrupulous organization who charge exorbitant levels of interest. The easy rule here is to simply stop borrowing, deal with the debts you have, and don’t take on any more, no matter how tempting it may be.
There is a road out of debt, it is tough, but the destination of debt freedom is well worth it.