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Sometimes, rather than consolidation, it is MUCH better to:
FILE BANKRUPTCY.
Do you feel like you are drowning in debt? Are you even able to make your minimum payment each month on your credit cards? Are you thinking that you will NEVER be capable of paying off your credit card debt? You are definitely not alone, and you can get help! Financial stress should not prevent you from sleeping at night.
@@Beware of the debt consolidators who guarantee to negotiate with your creditors for lower interest rates and all you have to do is make one low monthly payment. Typically they add is a fee to cover their costs, which can be as much as 10%. Why pay them when you can pay this additional money to your monthly credit card statement?
NEVER USE payday advance loans or credit card cash advances. The repayment terms will just dig you an ever bigger hole than you are already in and make your situation that much worse. They seem like they will help solve your immediate problem, however they are just postponing your problem and adding to it!!
WORK ON GETTING BACK ON YOUR FEET!
Developing a budget AND sticking to one, is one of the most important things that you can do to help improve your financial situation. Cutting back on luxuries and deciding the difference between wants and needs can save you hundreds of dollars every month. DO NOT SPEND IMPULSIVELY. Ask yourself two or THREE times, do I need this or do I just want this?
Check this out:
Americans are the kings of the world when it comes to eating out. Eating out accounts for much wasted spending in most families. Taking a meal to work for lunch or packing your kids meals for school can save you hundreds of dollars a month sometimes.
$5 value meal x 7 days a week=$35, $140 a month, or $1680 yearly!!
Are you a coffeeaholic?-- $3 coffee x 7 days a week=$21, $84 a month or nearly $1,000 each year!
Renting movies are a great way to entertain your family, while saving money every week. Many grocery stores now have movie vending machines where even new releases are only $1.00 YES one dollar!
Shopping around for lower automobile insurance rates is another great way to save money. Just because you have been with your insurance company for several years, does not mean that you have to stick with them. There are multiple websites that shop you around to find the best rate, and we can almost guarantee there is a company out there that can save you money compared to what you are paying now!
Contact each Credit Card company and let them know you are having financial trouble. Keep trying to make the minimum payments, if you are up front with them, they may waive some of the late fees or give you some extra time to come up with more money. NEVER avoid their telephone calls and again it's much more beneficial to be proactive and contact them FIRST! See if you can transfer the balance to another card and get a lower interest rate, juggling your debt from card to card can be a great way to keep your payments lower and avoid hundreds of dollars in interest charges. NEVER let it get to the point that you are turned over to a collection agency. Work with them and more than likely they will work with you!
Car and Home Loans. Call your mortgage company or auto loan company and let them know that you are having financial difficulties and that you are working to get back on top of things. If you call them before they call you, they are more likely to be accomodating. Avoiding or dodging these calls is not solving anything and will more than likely result in harsher consequences. Many times, they will be willing to work out some type of payment plan with you, most companies would rather work with you to get their money than have to go through the process of reposessing the property because most of the times they lose even more money when they have to repo your property.
DO NOT GIVE UP HOPE!
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