Debt Advice Available To Get You Out Of Debt!
by Jim Morgan
Sunday, Jul. 12, 2009 at 6:18 PM
Debt Advice Available To Get You Out Of Debt! You have yourself in a hole. Well some good debt advice can help pull you out.
Drowning in debt with no relief in sight can be a devastating experience. Anxiety can be overwhelming, we grow short tempered with those that care about us and our relationships suffer. It is a miserable experience, an ugly experience, to realize we are drowning in debt with no relief forthcoming. I have been there, I know what it feels like.
I was in the same circumstance, I was drowning in debt and I felt like I had no options, no hope, but I first want to say that you are not alone, many people find ourselves in this situation and there are solutions. Below we will outline some non-traditional means of getting yourself out of this debt situation.Many people do not know what it means to be solvent or insolvent. Even more alarming, they may not know what to do if they found out if they were solvent or insolvent. A solvency test is similar to a medical test. For example, a cancer test may make it more obvious to people that they would need medical help or attention because the consequence of not treating cancer is death or a severe deterioration in their health.
When I was drowning in debt I remember reading guru advice, on the internet, and on television, telling me to spend less, and be more responsible. I was so frustrated with them, their solution was always to spend less when I couldn't be more frugal! Below I am going to discuss the debt reduction options gurus don't like to talk about.
Debt occurs when one spend beyond their means of income. When loans and other lines of credit are taken out, the need to spend grows even more. But debt is a big problem and one shouldn't take this matter lightly. The problem with debt becomes more serious when people start losing jobs.
In a time like this, it is a wise idea to hire the services of a debt advice agency to provide you necessary and professional advice. Such companies are a blessing in disguise as they help debtors in their most tough times by working with the creditors and the debtor.
Such companies come with various debt consolidation programs that convert all debts into one debt. They also help reduce the rate of interest. The only thing that debtor has to do is to pay a specific amount to the debt advice agency every month. These companies make the payment on debtor's behalf.
The easiest way to get information about such companies is to go online. Make a list of companies providing such services and compare their rates and services. Come to a conclusion only if you find it will suit you the most.
* Stop paying your non-essential bills. If you haven't already, let your credit lines, or credit cards default. Stop struggling to make payments and let your credit suffer while you rebuild your cash reserves. You will take a hit on your credit score, but often you will be able to renegotiate the repayment terms with these credit providers from a stronger standing when you are able to pay them off. Credit can be repaired, sometimes it can be empowering to know that you can survive and rebuild.
* Take a job you were avoiding. In my case there were better paying jobs that I didn't want to take because I didn't enjoy the work. I had to come to terms with the fact that living under the yolk of paralyzing debt was worse than the jobs I didn't want to take. A second job or a less than desirable job doesn't need to be permanent, use it to get back on track.
* Declare bankruptcy. You are not your credit score, and countless successful, well respected people have experienced hard times and were forced to declare bankruptcy. A financial mentor of mine oft repeated to me that most millionaires have been bankrupt before, I don't know the stats on that statement, but Donald Trump comes to mind.
* Desperation is good. Desperation can be quite motivating. When I went through my troubles, desperation caused me to seek out freelancing jobs and other sources of income that I wouldn't have looked for otherwise. These jobs led to relationships being built that would later get me out of debt and back on track. Desperation forces you to do what you are scared of and challenge yourself.