Debt Is No Longer The Black Dog It Used To Be – Here’s Why

Debt Is No Longer The Black Dog It Used To Be

Debt can be a difficult reality to deal with. No one desires to be in debt, but it can befall anyone in many unfortunate ways. Vilifying yourself is of no benefit if you find yourself in debt, but learning how to most efficiently climb your way out of it can be. It’s important to understand exactly why this is. There’s no real reason as to why anyone should feel strangled by debt. The old view is that being in debt is akin to a black dog biting at your heels, constantly hungry and never satisfied. Except unlike regular dogs, this one will only grow in size the less you feed it.

While that last sentiment is to a large extent true, being in debt needn’t feel like an overbearing weight that desires to eat you whole – so long as you have the correct methodology for overcoming it. Doing so will lead you to develop a better financial understanding of your situation and give you the tools and knowledge needed to prevent you from making the same mistakes in the future.

Remember, your creditors want you to be able to pay back the debt. Usually, they can’t do that if they press too hard to the point where you feel inclined to take bankruptcy as your only option. For this reason, many helpful terms exists to help you meet the load you are required to bear. Here are a few methods for raising the cash necessary to overcome the debt burden you are carrying.

Charities

Many debt charities now exist to solely help you out of your debt issues. They do so using various methods. The main one is helping you identify and come to terms with the exact calculations of how much you owe, how much you earn, and how to balance the two in order to develop a sensible monthly or weekly payment that can help you overcome your load.

This isn’t all they offer. You will find help with budgeting effectively, communicating with your debtors through an agency skilled in risk management and affable communication strategies (merely using their name can help your debtors show that you’re trying to solve your situation,) as well as helping you arrange payment plans or settlement arrangements that can help you clear debts quickly.

Through these charities, you will be offered a debt advisor, who will stay with your case throughout its infancy to completion, and the results of doing this are hard to understate. This extra helping hand can help you tremendously in emotionally overcoming the debt too – which is the hardest part for most people.

Living Within Your Means

It sounds like an almost patronizing point to make, but that doesn’t make it any less true. Coming to a clear conclusion about your debt problems will only serve you well if you live within your means, budget effectively, and stay in direct communication with your debtors. If you can, sell unused assets that can raise much-needed capital to help overcome the balance and prevent any future forms of interest from accruing. If you do this, you’ll find that the black dog grows at a much slower rate than if you simply ignore a debt.

Settlements

If you have the ability to, settling can be a great way to overcome the debt burden at a fraction of the price. The debtors will usually offer you a reduced percentage of the cost to pay in order to settle the debt immediately. From a long term expenses perspective, this can be more than worth it. However, you must keep in mind that the settlement will show on your credit report as being ‘settled,’ instead of ‘paid,’ and this can last there for years. It’s a great way to overcome your initial troubles if you believe that you won’t be applying for any lending, mortgages or finance options in the years to come.

Prioritize

Another good way of overcoming multiple debts is to prioritize one while making minimum payments on the others. Using a great credit counselling society will help you figure out how to best apply this with the most efficiency. This allows you to slowly whittle down the smaller debts while you chip away at the large ones. One large debt is much easier to manage than one large, three medium and two smaller debts. Make sure that you tackle them in order of how quickly you can overcome them, and you’ll find that your debt list reduces in size faster and faster.

These tips, applied diligently, can help you overcome your debt issues faster than you might have originally assumed.

Image courtesy of Flickr.

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