Being in debt isn’t just bad for our bank balance. It can seriously damage our health. Many people feel they sink into a depression when their balance is in the red (negative). So trying to stay in the black (positive) is a good tactic for both your financial status and mental health. If you are already in debt, try to pay back all the money you owe as soon as possible. Is it proving to be an uphill struggle so far? Here is a fantastic guide on how to lose your debt for good!
Acknowledge Your Debt
First and foremost, you need to acknowledge that you have debt, and that is a problem. Pretending it isn’t there or will just go away on its own won’t help your situation. Once you have accepted that you need to sort your finances out, you should sit down and start a plan. Create steps that you can take to help ease your situation. If you stick to a plan, you are more likely to succeed in wiping your debt.
Think About Getting A Loan
This may sound stupid, but getting a loan could be the answer. If you have a lot of debt with different companies and on various credit cards, think about taking out a big loan that will pay them all off. You will then have consolidated all your debts into just one repayment. Just the one monthly payment will be much easier for you to manage. It can also take some of the stress away, as you don’t have a lot of different companies pestering you for money.
Sort Out Your Credit Rating
Before you apply for that loan, you might have to fix your credit rating. If you have a good credit rating, then you have a better chance of a financial institution giving you a loan. You can still fix your credit score even if you are in debt. One of the most popular ways people get help with this is by speaking to professionals. To find out which is the best credit repair company for you, click the link.
Deal With Urgent Debts
If you have any debt that needs paying off urgently, pay it as soon as you have the money to do so. Don’t wait until you have enough to pay off all your debts at once. Especially if you face having bailiffs come to your home or place of business. Priority debts include overdue rent payments, mortgage repayments, and any tax obligations. Non-priority debts are things such as student loans, credit card debts, and debts to friends and family. However, if you have some money left over after paying off your priority debts, you should put this towards the non-priority ones.
Negotiate
Believe it or not, it may be possible to negotiate with your creditors. If you are genuinely struggling to pay off your debts, then a lenient lender may be able to arrange new terms for you. This could include lowering monthly repayments, or they could give you extra time to pay off the debt. If you are lucky, they might even freeze any interest on your debt. This will give you some extra time to get in control of your finances. However, don’t forget that lenders don’t have to help you out, and they might not give you any leeway.
Administrative Order
An Administrative Order is a formal agreement that states the terms under which you will pay back your creditors. It indicates the period in which the debts must be paid off. The Administrative Order can include all types of debt and is legally binding. This means that your lenders will not be able to increase your monthly repayments or demand you pay everything off in a shorter length of time. If you get an Administrative Order, one of the main benefits is that you could be debt free within three years.
See If You Can Write Off Your Debts
In some circumstances, creditors will write-off debts. This usually occurs when your debts have reached a very high amount, and you are left with very little at the end of the month. Once you have had your debts written off, your creditors are legally bound never to chase you for the money again. The only thing is, there is a small fee to pay before you chose to write debts off. This will need to be paid upfront. You also may not be able to do this on your own and may need to go through a professional institution.
Bankruptcy
After a certain length of time, you can claim bankruptcy and write off your debts. This is usually only possible if you have reached the level of no return and you are likely never to be able to pay off your debts. Legally, most debtors won’t be allowed to chase you for repayments. There are a few downsides to this method, however. You will need to pay a sizable up-front fee to enter bankruptcy. You will also be putting your home and business at risk. Your home could be repossessed, and you may find it hard to set up a new business for several years.
Ask Friends And Family For Help
Another way out of debt could be to ask friends and family for support. They may be able to lend or gift you the money needed to pay off your loans and bills. If not, they can still help you in different ways. In the event you need to sell your home, you might be able to stay in a relative’s spare room until you get yourself sorted.
Being in a lot of debt can be a very stressful experience. But if you take everything step by step, and allow for plenty of breathing space, you should be able to get through it. It’s no easy feat, but it is possible. With the support of friends and family, you should find yourself back in the black before you realize it. The important thing then is to stay there!
Over to You
Have you ever found yourself in financial dire straights? If so, how did you overcome your issues?
Lose The #Debt For Good Using This Handy Guide #financesClick To TweetDisclosure: The above content was written specifically for My Girly Parts on behalf of our partner. It may include Affiliate links.
By the way, I’m over at InspiredVA today talking about my favorite way to generate traffic to my sites! Check it out –>
Create Your Personal Online Magazine with Flipboard
- About
- Latest Posts
Brenda
I have over 28 years as an Administrative Assistant, including at the Executive Level. I also have over 5 years experience as a Blogger,Web Manager, Web Designer, and Social Media. If you're in need of assistance, please Send me an email and let me know how I can help.
Latest posts by Brenda (see all)
- Lose The Debt For Good Using This Handy Guide - April 4, 2016
- What To Remember After Weight Loss Surgery - April 2, 2016
- Why Everyone Still Loves Smoothies in 2016 - April 1, 2016
