If you’re looking at your bank balance and wondering how you still haven’t recovered since the festive season inconveniently blew a hole in your nestegg, you’re not alone. Looking at your bank balance through your fingers is a natural part of being a grown up. Life is expensive, and just by being alive you’re going to incur massive debt – to be paid back over your lifetime (the word ‘mortgage’ literally means ‘death contract’). So. Unless you’re born into serious money, we’re going to have to accept that debt is inevitable. But what happens when debt matters become insurmountable? Well, there are things you can do…
Yes, we’re going to jump right in with the topic of bankruptcy. Why? Because bankruptcy is very real, very common, and very worth talking about upfront to help to remove the stigma. But what is it? Well, it’s probably more or less exactly what you think it is. If you have more debt than you are capable of paying, you may be heading towards bankruptcy. See this websitefor precise info. In essence, declaring bankruptcy will reduce monthly payments, remove the stress that comes from being pursued by creditors, and potentially even write off some or all debt in certain areas of your financial arrears (worth checking out if you feel you may be out of options).
Speak to Creditors
Speaking to creditors is something that’s quick and simple and shame free. The person on the other end of the phone does not know you. They will likely never meet you. They handle multiple calls like this every day. If anything, you can make their job easier and speed things up by being straightforward with them. If you’re having trouble finding the money to pay your debt, enquire about lowering your monthly payments and see what they say. Sometimes you may be offered a period of respite where you will be able to take a small break from making payments. Sometimes you will be offered lower payments over an increased timeframe. If your personal circumstances meet certain criteria, you may even qualify for special extra low payments for a set period. Sound good? It’s all potentially only a phone call away (you won’t know until you ask).
Last (but not least) … Sell It All
If you’re regularly short on cash, the culprit may be needless possessions. It’s a bit like turning perfectly good drinking water into ice so that you can’t drink it anymore, and then complaining that you’re thirsty. Luckily, there’s a way you can turn that ice back into water – by selling it all (is this metaphor becoming too strained?). OK, enough with the ice. The point is that other than bills and those essential payday buys – such as food and toiletries – the other main thing we spend our money on is entertainment. Whether it’s technology or fashion or collectables, your home is probably packed with an untold fortune, just lying around, unloved and unused. My advice? Sell online, and realise how you’ve been wasting your money.