Debt is one of those things that can keep you up at night. Day after day, bills and late notices are coming in. You probably get calls on a regular basis from debt collectors. It’s the type of thing that can cause enough stress to make you physically ill.
It’s time to step back and catch your breath. You may be drowning in debt but it’s not the end.
Remind Yourself of What Can and Can’t Happen
What’s the absolute worst thing that can happen if you can’t pay your bills? The absolute worst? Chances are the worst thing that’s going to happen is that you’ll have items repossessed or a creditor may choose to take part of your paycheck or put a lien on your bank account. Here’s the thing though. Most companies won’t go after small debts. In some states, creditors can’t even garnish paychecks for credit card debt. Research your area and know where you stand.
Go on Spending Freeze
If you’re going to get out of debt, you’re going to need money. If you have a stockpile, go on a spending freeze. This means that you’re not going to buy anything unless your family absolutely needs it. This will clear up extra money to send to creditors or to give you breathing room in your checking account.
Call Your Creditors
It doesn’t matter if you’re behind on your bills or not, contacting your creditor can lead to good things. Some creditors have programs in place to help those that need it. They may put off your payment for a month, lower your interest rate, reduce fees, etc. It never hurts to reach out to them.
Be Smart About Consolidation
Before considering a consolidation loan, make sure you read the fine print. There are a number of shady companies out there that will charge outrageous interest fees. If you want to go down this path, your bank may be your best option. It just depends on whether or not you’re behind and have ruined your credit score.
Determine What You Can Live Without
If you want to get out of debt, you have to be willing to make some sacrifices. You might give up your TV package, monthly manicures, expensive junk food, etc. There are so many things you can live without. Once your debt is paid off, you’ll be happy you made the sacrifice.
Analyze Your Spending Habits
Last, but not least, take the time to discover how you got here. In many cases, people simply make bad decisions. We live in an instant satisfaction world. If you don’t take a hard look at your habits, you’ll never get out of debt.
It’s okay to take some time and step back from things. You need to make some hard decisions, contact people, and learn from your mistakes.
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