These days most people are so overwhelmed by debt that their focus is on keeping their head afloat. That may have been fine if these hard times were going to be brief. However turn on the TV or read any economic article and the forecast is bleak, At least for a while. In my experience tough times call for tough measures. It is time to start making some major changes that although painful at first will benefit you and your family in the long run.
The key thing is to keep as much of your money as possible. It is time to start looking at spending patterns and really track how much of your hard earned money is going out the door. I challenge you to track your expenses on a weekly basis. This will give you a clear picture of what you are spending your money on. You may think you know but it is amazing how much you learn when you actually write things down and look at the cold hard facts.
When you tracking your credit card payments I recommend tracking how much of your payment is actually going to interest and other fees and how much is actually going to pay down your balance. Though shocking and discouraging at first, this should be motivation enough to take action. After all why should you be paying for the CEO’s children to go to college when you have or will have your own kids to put through school?
If you have a good handle on your finances and are making progress paying down your debt then kudos to you. But if you are like the majority of people just trying to keep you head afloat here are some options to getting rid of your debt that you should seriously think about.
1) File Bankruptcy:It’s a legal process that you have to qualify for. It’s currently an undesirable choice unless you can claim Chapter 7, which is liquidation. If you can, go for it. A lot of people are under the false impression that it will destroy your life and your credit. That is completely untrue. Your credit will immediately boost because you will no longer have any debt. Within 3 months you can qualify for new car loans. Within one year you can qualify for home loans. Not to mention peace of mind.Chapter 13 is usually not worth it. The previous administration changed the rules, and it is really difficult to be relieved from debt. They may even require you to make payments for the next six years with about $100 left to spend after your bills and necessities are paid each month. I don’t recommend it.You can check any of your local Bankruptcy Lawyers who offer a free consultation. They’ll let you know if you can qualify for a Chapter 7.
The key thing is to keep as much of your money as possible. It is time to start looking at spending patterns and really track how much of your hard earned money is going out the door. I challenge you to track your expenses on a weekly basis. This will give you a clear picture of what you are spending your money on. You may think you know but it is amazing how much you learn when you actually write things down and look at the cold hard facts.
When you tracking your credit card payments I recommend tracking how much of your payment is actually going to interest and other fees and how much is actually going to pay down your balance. Though shocking and discouraging at first, this should be motivation enough to take action. After all why should you be paying for the CEO’s children to go to college when you have or will have your own kids to put through school?
If you have a good handle on your finances and are making progress paying down your debt then kudos to you. But if you are like the majority of people just trying to keep you head afloat here are some options to getting rid of your debt that you should seriously think about.
1) File Bankruptcy:It’s a legal process that you have to qualify for. It’s currently an undesirable choice unless you can claim Chapter 7, which is liquidation. If you can, go for it. A lot of people are under the false impression that it will destroy your life and your credit. That is completely untrue. Your credit will immediately boost because you will no longer have any debt. Within 3 months you can qualify for new car loans. Within one year you can qualify for home loans. Not to mention peace of mind.Chapter 13 is usually not worth it. The previous administration changed the rules, and it is really difficult to be relieved from debt. They may even require you to make payments for the next six years with about $100 left to spend after your bills and necessities are paid each month. I don’t recommend it.You can check any of your local Bankruptcy Lawyers who offer a free consultation. They’ll let you know if you can qualify for a Chapter 7.
2) Debt Settlement:This is different from debt consolidation or credit counseling. Debt Settlement actually reduces your debt by 50% to 75%. The way it works is you actually pay off your creditors but at a reduced rate saving you thousands of dollars. Since your debt is reduced greatly so is your monthly payment. This helps you immediately by decreasing your monthly cash outlay for bills and also sets you up on a plan to get your debt paid off quicker than you could on your own. Debt settlement companies vary greatly in what they charge for their service but the two that I recommend is Ideal Debt Solutions and Wise Up Financial. Both of these companies provide excellent customer service, save their clients thousands of dollars while still being reasonable in what they charge for their service.
