Disturbing Fact
More than fifty percent of those reading this and in debt will never escape its clutches! How can I make a sweeping statement like that without even knowing you? The facts are as quite simple to explain, please read on.
The Two Categories
People in serious debt generally fall into two categories, the first category being those who blaze recklessly through life without giving a care to the magnitude of incurred debt or the trouble caused all round for those involved. This group of people are usually beyond help and you can guarantee will never change.
The second category consists of people who are extremely troubled by debt and find themselves in financial difficulties, often through events not always caused by their own wrong doing. Each day can become a living nightmare. The postman merely walking up the garden path to deliver the mail can instil fear into the hearts of debt laden people. Will it be another threatening letter, perhaps a summons? The telephone can ring and is nervously answered. If you find yourself in this category there may be hope.
One Step At A Time
The first thing to do when you can not meet your financial obligations is to sit down with pen and paper and list all of your weekly (or monthly if it is easier) expenses down to the last penny, forgetting nothing. Now you must be very drastic and strike out any outgoing that is not totally necessary. If you do this honestly and make sacrifices you are beginning your journey of recovery. Many people surprise themselves at what they are spending needlessly.
Go through the list once more and attempt to cut out one or two more items. Is there any way to increase your income, maybe sell an asset or take on a part time job?
The next step is to contact your creditors. They are more likely to be helpful and responsive if you keep them informed. Tell them truthfully how you have found yourself in difficulties, truthfully being the operative word as proof to back up your statements may be required.
Priorities
You may have spent years paying a mortgage secured on your property and it is imperative that you give this priority. Your lender may be able to offer a reduced rate during these times with the deficit of monies being placed at the end of the mortgage period.
If you loose your house it could be extremely hard to start from scratch to provide another.
Conclusion
Hopefully, if you put these simple steps into practice you will be able to help yourself and obtain help. Should you still find your financial affairs spiralling out of control please enrol with one of the many Debt Councillors to obtain expert guidance and advice at the next level.