Do you ever avoid your debt problems? How long have you been doing this? If you’ve been avoiding your debt problems for some time, you probably know they won’t go away. Let’s look at the reasons you are avoiding them. You may be scared to talk to creditors. Scared a loved one will find out about your out of control finances. Or, you may just be scared that you’re headed to bankruptcy court.
Instead of worrying, why don’t you look at this as an opportunity. An opportunity to make a real change in your life. The first step to doing this not avoiding your debt problems. Look for some answers and you’ll find there are ways out – without bankruptcy.
You may want to look into debt consolidation re mortgage. This approach only applies if you own a home. What will happen is that a lender will take your positive equity in your home and restructure the mortgage or add a second mortgage to your property. They will finance in your debt and consolidate both loans into a debt consolidation re mortgage.
Even if you don’t qualify for the debt consolidation re mortgage, you have other debt relief options. Getting on a budget is a great way to start getting out of debt. Look at your monthly expenses. Put them on a list in order of necessity. Food, transportation and shelter should top the list. Then you list other debts in order of importance. Now, look at each of these categories and see where you can make cuts. You’ll probably find money in all the meals you eat out, extra groceries you buy without a list, two to five DVDs you buy per month, a new outfit all the time, etc.
These saved funds can be applied toward two categories – savings and debt. The savings (short-term) will be used in place of credit for emergencies and unexpected events. The other money will be put toward snowballing your debt.
Once you get some of the debt out of the way, you may be a better candidate for debt consolidation re mortgage. Your credit improves as you pay down debt, and this is one way to increase it so you can qualify for the loan.