Being in debt can be a very
stressful and worrying situation. Whether you owe one creditor or several,
getting your bank account back in the black can seem like an uphill battle.
The first step in getting out of
debt is to face reality. It might sound obvious, but you'd be surprised at the
number of people who deal with debt by sweeping it under the carpet and denying
they're in trouble. You may find it hard to confide in friends and family for
risk that you might lose their respect, or even lose them altogether. If you
really want to get out of debt, you'll need to come
clean.
clean.
If you're not entirely sure how much
you owe, sit down and go through all of your bills and make a list. Compare the
figure against your monthly incomings and outgoings, and work out how much you
can afford to repay each month. You may wish to consider making a few sacrifices
here and there (e.g., cable TV or mobile phone) to free up some extra cash. Now
let's take a look at some of the options available for repaying the money that
you owe:
1. Start paying more than the
minimum on your monthly credit card statement. Remember that the longer you
take to repay the balance, the more interest you will get charged in the
long-term, so pay as much as you can afford each month. Also, if you own more
than one credit card, consider transferring the balance (if you are still within
your credit limit) of the one with the highest interest rate to the one with
the lowest.
2. Raid your piggy bank: If you have
savings stashed away, it would be sensible to use them to clear your debts.
3. Approach family members and
trusted friends to see if they are willing to float you a loan. Make a written
agreement to establish when repayments will be made and how much interest will
be charged. As long as you stick to your side of the bargain, chances are you
will receive a very preferable interest rate, and your relationship will remain
amicable.
4. If you have no savings, credit
card or other methods of freeing up some cash, you could consider bank loans or
payday loans. A payday loan is designed to tide you over until you receive your
next paycheck. For a short-term solution, they can be very handy, but if you
can't afford to repay in full at the end of the month, payday loans can work
out to be very expensive. Therefore, always make sure you can pay the money
back in full on the agreed date.
5. Once you've covered all the above
possible options, contact your creditors to see if they are willing to
renegotiate the terms of repayment. The majority of creditors can be quite
understanding if you are at risk of going bankrupt, so ask for a new repayment
schedule with a lower interest rate.
6. As a last resort you could
consider filing for bankruptcy, which allows the discharge of the majority of
debts. However, remember that doing so will mean that this will be noted on
your credit record for ten years, which may result in your struggling to obtain
credit during that time.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น