Do you cringe every time the phone rings? Do you panic every time a letter comes through your door? Do you hide every time someone knocks at your door? Are you doing this because you owe so much money and know you cant afford to pay your accounts?
Before you start panicking, hiding and cringing you need to know that there are thousands of people out there in the same situation, gosh Ive been there myself on numerous occasions. Its a sad reality of the world we live in and we got this way because we never dreamed we wouldnt be able to pay back our debts.
How Does it Start?
The entire time you are fighting debt, you wonder how on earth you got there. That sneaky credit card offer that came through the door, you applied and forgot about it. Next thing you knew a new shiny credit card arrived on your doorstep, just in time for Christmas. You used the card because you didnt have enough cash to buy all the Christmas presents and since then you have been struggling to pay them back, this is the reality of it.CreditRepairXp will give you the brief introduction of all financial issues.
Before you know it you have missed an instalment and then another and another, for each instalment missed you are charged extra interest and a late penalty fee, which means you are just digging yourself deeper in debt.
Now chances are you have already sat down and tried to work out a financial budget so you can pay all your debts back. You may even have collectors knocking on your door or threatening letters stating you may lose your house, debt can spiral out of control and it spirals really quickly, before you know it you are so deep and your monthly income just isnt enough to cover it.
Before you start panicking and getting too stressed there are ways to protect yourself and start paying back your debt, one of these suggestions is debt consolidation. Now I dont know if you have heard of this before, but basically it is a loan that you take out that is the amount of your debt. So if you owe £5,000, your loan is £5,000.
You will need to sit down and work out your finances. Work out how much you owe and how much income you get. Work out a monthly budget excluding your accounts that you cannot afford to pay.
It is at this stage you will need to remove any luxuries if you really want to get your debt paid back soonest. Once your budget is complete you can see how much you have left over, leave enough for food and basic utilities, the balance is the amount you can afford to pay each month to debt consolidation. Be sure the amount you choose you know you can pay back each month, this is a solution to make things better for you so you need to be committed.
Debt consolidation is just one of the many financial solutions suggested by Paula Frost, a freelance writer with a passion for finances and money saving tips.