If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.
Looking to get out of debt? Here are some important dos and don’ts to follow.
Ignoring your debts isn’t going to make them go away. Many people respond to rising debts by hiding final payment letters in drawers and ignoring phone calls from creditors. This can only serve to anger your creditors and will make them less likely to sympathize with you if you can’t pay. Ignoring debts will also cause them to rise as late payment charges and interest fees are added.
By telling your creditors that you’re struggling to pay your debts, they may be more sympathetic and more willing to offer a more affordable payment scheme. They may even be able to freeze interest rates or drop late charges – and may even be willing reduce your debt in some cases. Most companies and lenders have someone available that you can talk to on the phone.
Taking out more loans will only add to your debts. Now is the time to make a pledge not to borrow any more money. This includes not using a credit card – you may feel that you need to cancel your card.
There is an exception to the rule of no borrowing and that is if you take out a loan with the intention of reducing your debt. This can be done through refinancing – this involves paying off a high interest loan with a low interest loan in order to prevent the sum of money from rising as fast. Consolidation loans available from lenders such as Bamboo Loans meanwhile can also be useful for paying off multiple debts – these loans may also allow you to lower your interest rates and may make it easier to pay off your debts by converting them into a single monthly payment.
It’s worth seeking out professional support to help pay off your debts. Lawyers may be able to help with debt settlements, whilst other specialist lawyers such as Rashad Blossom may be able to help you file for bankruptcy. Meanwhile, there are debt counselling services that you can also use.
Your friends and family may be able to help you pay off your debts, but you shouldn’t rely solely on their help. It could put a strain on relationships with the people closest to you. Try to solve debts independently when you can so that you don’t get into a bad habit of letting others pick up the pieces. At the same time however, don’t hide debts from those around you and accept help when it is given.
12 Ways To Understand Money A Little More Each Day
4 Financial Tips For Young Adults
How You Can Make Sure You Are Safe From Fraud
Why Sustainability Is an Important Personal Finance Principle
What Is A Parked Debt On Your Credit Report
What Fatherhood Means For Your Finances
How To Take Care Of Yourself Financially After An Injury Or Accident
How To Deal With Student Loan Debt
Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.