It seems like only yesterday that my wife and I were in some staggering debt. We were leasing a Jetski, had a crushing amounts of business and personal debts, financed two cars and were juggling payments on more than ten credit cards. There were so many ignorant decisions that caused us to stumble along until we landed in this pickle.
I had an A+ credit rating, my wife did not - in fact, she was far from it. Yet, it didn't stop us from being able to acquire credit. Charging the things we wanted was so easy, it felt like easy money. That is until the bills rolled in. We were blinded by our desire to keep up with appearances, as well as meet the needs we had that our income didn't.
As a small business owner, the one thing that was constant was the inconsistency of my profit margin. Stresses mounted when my biggest client decided he would only pay half on the outstanding invoices he owed to us.
Needless to say, it didn't take long before our bills piled up and the phone calls from creditors started. Of course, we desired to do what was right; we wanted to work out something with our creditors as they called. However, they just wanted to get paid the money they were owed, not hear a sob story. Our story is a familiar one - we were doing what we could to keep the electric on and the water running. God knows you don't want to be without air conditioning in Florida!
Realizing that each person has a somewhat different story, there is one common denominator - they are all just as stressful. When the repo man came knocking on the front door at 3 am, attempting to collect my beloved Jetski, it was the final death blow to our fantasy that we could make it all go away on our own. What we believed was that our choices were to either ignore the phone that continued to ring night and day or claim bankruptcy.
Choosing to avoid the phone calls worked only temporarily. But, over time, the debt is sold from one collection agent to another until one of them gets a hold of you. So, one collection agency may give up, but they will pass the debt off to another.
Filing for bankruptcy sounded like a good idea - in fact, it was once thought to be the quick fix. Today, however, the requirements for filing are much more stringent. In fact, it is required that you first complete a credit counseling program before you can file. My advice? Don't file if you don't have to - find an alternate option. Finding help is the best way to face your situation wisely, head on. In today's financial climate, there are many facing challenges. How did we get out from underneath it all? We chose to enroll in debt consolidation to reign in our finances.
There are advantages and disadvantages with any debt help program. For us, the good outweighed the bad. What was the most challenging? Well, during the process, your credit report will look like you are in Chapter 13 bankruptcy. Once you are through the process, any future glances at your credit report will show that it was, in fact, in a credit counseling program - and that you faithfully completed it. Hence, this shows that you were diligent in your commitment to your creditors.
Overall, enrolling in a credit counseling program can bring some stress relief. Once enrolled, the creditor call stop, the interest stops compiling, and so does the over the credit line fees. You begin to feel like someone is fighting in your corner now. Stay focused. Keep your vision of fiscal freedom close at hand and don't allow yourself to become sidetracked now that the calls have stopped. Don't fall into old patterns of spending. Each month, send in your payment to the debt consolidation company faithfully. They will then forward the agreed upon amounts to each of your creditors. If you cannot make a payment for any reason, communicate with your debt consolidator immediately. Communication is the key to staying on track. Don't let your goals get sideswiped. Fiscal freedom can be yours if you stay the course.
It is important to note that not all of your debts can be consolidated into this type of program. Debts such as student loans, mortgages, secured debt and IRS taxes are just some that cannot be included. The credit counselor will go over all that with you. How did our story end? We made it through to our goal. Today, we only use prepaid credit and debit cards. We have chosen to stay debt free for good.
Eric Fetty is a professional writer and eBook publisher. You can visit the Debt Negotiation website for more of his articles. Check out his latest tips on Debt Consolidation Savings. Article Source: http://EzineArticles.com/?expert=Eric_Fetty |
