I need help with debt

I need help with my debt

Have your debts become too much to handle? Perhaps you’re struggling to make ends meet due to circumstances out of your control, like sudden unemployment, poor health, or a relationship breakdown. Is this your first time with a financial issue and you’re not sure where to turn? Those easy to get credit cards and store cards were just too tempting weren’t they? The main problem with debt is that it has to be paid back and that is a lot harder than borrowing it.  If you are finally at the point where you say “I need help with my debt”  you are on the path to debt recovery.

Regardless of your current situation, one of the most important things you can do is to act quickly, the longer you leave problems the worse they get. There is always a solution to every problem even debt problems. I have personally been in the situation where I am sitting at the desk saying I need help with my debt and having no idea where to turn. Here are a few tips to help you alleviate the stress of debt and put a plan together to become debt free.

Understand where you currently stand
Before you can get out of your financial issues you need to know where you are currently and how you got there. How much do your debts add up to and establish exactly where your money is going. Rather than keep saying I need help with my debt, start thinking about how you can help yourself.

• Create a list of your debts, including interest rates, the amount you owe and the amount of your monthly payment.
• Include all debts, both secured (like your car, boat, home) and unsecured (like credit cards, store cards & medical)
• Write down discretionary spending – starbucks, pizza,cable TV and new clothes every month are nice but not vital

Budget

With all of this information in front of you it is now time to work out a budget. You got yourself into debt and you can get yourself out of it, sure it will take time but you can do it. Start by creating a weekly or monthly budget. By creating a budget for yourself or family, you can start to take better control of your finances. A budget should first take into count all your essentials, such as your home, food, transportation and your utility costs and then your debts. After establishing a budget and understanding your debt, consider getting rid of the credit cards so you don’t get tempted to use them again. Instead you should create a savings account and put away as much money as you can and have this work as your emergency fund. By doing this when something does happen, you can use those funds to pay for your needs instead of the credit card.

Once that emergency fund is at about half your month’s salary, start paying towards debt.

Need or Want

• You need food, you do not need to eat steak or pizza three times a week
• You need clothes, you do not need to buy the latest shoes, handbags or clothes
• You need to have some form of entertainment, it does not have to be cable tv with 200 channels.

Simple Maths
Spend less on your day to day living so you can deal with your debt and never again have to sit and cry “i need help with my debt”  again.  The more debt you pay off the more money you will have to pay the next bill and it works like a snowball. You will be paying off your debts faster and faster if you still to the budget.

Consider a Debt Consolidation
For many people a simple budget will not suffice and a different solution is needed. Depending on your unique situation and background, you may qualify for a debt consolidation solution. This is the process of consolidating all of your unsecured debts into one payment which can help make monthly payments easier and affordable. Typical debt consolidations can be made through personal loans or credit card balance transfers. When looking at these as an option, it is very important that you consider the costs you may face, including interest rates, over the limit fees, early termination & late fees.

There are government funded groups that will help you, be very, very careful who you deal with as there are many groups out there that are less than honest. If the deal sounds too good to be true then it most probably is.

Is Bankruptcy a Possible Solution?
Bankruptcy should be considered as a last resort but if you have reached the stage where you simply are unable to repay your creditors you should consider bankruptcy. Bankruptcy will allow you to wipe the slate clean and start all over again. Bankruptcy does have many drawbacks and consequences but is rarely as bad as people image. If you are considering bankruptcy you should discuss it thoroughly with an expert such as a bankruptcy trustee or lawyer.

I need help with my debt is a all too common request, just remember that you are able to help yourself if you take the time to make a budget and stick to it. Once you have paid off all your debt you can work towards getting good credit scores again. After one round of problems with debt you will hopefully be a better customer for any company that does offer personal loans for people with bad credit.