Looking to get out of debt? Here are some important dos and don’ts to follow.
Don’t ignore it
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.
Do talk to your creditors
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.
Don’t take out more loans
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.
Do consider refinancing/consolidating your debt
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.
Do seek professional support
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.
Don’t rely on friends and family to get you out of debt
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.
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