Are You Drowning In Debt? Try These Debt Solutions
Finding yourself owing multiple big debts can seem like an inescapable situation. However, hiding from them won’t do any good – you have to confront them head on. Here’s how you can aim to destroy your debts, no matter how large they may be. That’s why I offer these winning debt solutions.Check out our disclaimer policy
Negotiate with your creditors
Most creditors – whether they be a landlord, billing company or lender – will be more than willing to make negotiations with you, even if it means paying the money back in smaller stages. You may be charged interest, but at least you’ll be paying it back. The worse things you can do is ignore phone calls and demand letters. This will only anger the people that you owe money to and make them less willing to make negotiations (and more willing to take further action).
Know your legal rights
Creditors have to go through a lot of steps before they can start forcefully demanding money off of you. There are also laws in place to prevent harassment such as constantly calling at unsocial hours or intimidating you with unwarranted threats. This is an important element of any of the debt solutions you utilize.
You can even hire lawyers to stop repossession and argue your case. Obviously, there are rules that you too need to abide by – making false claims of harassment against creditors or being violent or unreasonable towards debt enforcement agencies could get you in deeper trouble, so stay calm and civil. Asking for help is always a good debt solution.
Phone a friend
Suffering in silence won’t get you anywhere. It’s time to break the news of your debts to your friends and family. With any luck, they may be able to help you organize smart debt solutions. You’ll probably still owe the money to your friends and family, but at least here you will have more room for negotiation and possibly won’t have the interest that professional lenders will charge. Just make sure that you DO pay these loved ones back, otherwise you could sever friendships and family ties.
Consolidate your debts
If you’ve got multiple debts owed to multiple places, you may be able to take out one massive loan to pay off all these debts. This is known as a debt consolidation loan. You will of course still need to make regular payments to the lender of this loan, but at least all your debt payments will be in one installment rather than spread out to multiple people. Look for debt consolidation loans that are open to people with a low credit score and compare interest rates online.Are You Drowning In Debt?Click To Tweet
Cut your expenses
Having taken these measures to pay back your debts, your next step should be to try and cut your expenses to avoid this situation from ever happening again. Sometimes it can be worth making huge sacrifices temporarily, as these will ensure that your debts are paid back more quickly.
This debt solution could include moving to cheaper accommodation, selling your car, opting for a pre-paid bill meter, budgeting your weekly shop and cutting out any expensive bad habits such as smoking or drinking. Remember to still give yourself some money for leisure. In fact, you can treat yourself for every time you stick within your budget.