Face up to the fact that you have a debt problem, do something about it now! I suppose that's easier said than done; I understand it can only come from you.
That said, you have to admit to yourself that your debts are now out of control.
First step most people take then - Secured Consolidation Loan Never, never ever turn an unsecured into a secured debt, the company that offers this deal is committing a cardinal sin, but what the heck, why should they worry, you don't know any difference and when it's done its too late.
There is only one winner then which is the unsecured creditor.
Why? - Because they know you will be back the credit industry calls you a revolver, get it, I know it's not funny.
OK, let's face the truth! You can't borrow your way out of debt! About 80% of people who obtain a debt consolidation loan find themselves in deeper debt and bigger trouble than they were in before.
Of course they all said that it would not happen to them.
The reason it happens is simple but hard to honestly face, so I will say it again: You CANNOT borrow your way out of debt! A consolidation loan will not reduce the amount you owe.
It will only place your assets at risk or extend your debt further into the future and place you deeper in debt.
This does not solve your problems; it merely extends your difficulties.
Don't Borrow More Money to Repay Your Debts The clever answer is not to get into debt in the first place, isn't hindsight a wonderful thing.
This probably won't help you right now, but let's understand it anyway.
Second step - Lets use a Credit Card Use a credit card for what it's good for - which is making instant purchases and delaying payment - but only until you receive your credit card bill, at which point you pay it off in full.
Of course, just about nobody succeeds in this.
If they did, the credit card companies wouldn't last very long.
What can you do if, like most of us, you're not a financial superman and you have run up credit card bills and other credit commitments? The first requirement is to contact your creditors, and keep in contact.
Most problems can be overcome if you face up to them quickly enough and take action.
Contact your creditors, be honest about your circumstances and problems, and try to arrange a solution, e.
g.
reduced payments, either until you get back on your feet or until the debt is paid off.
At this point, it may be necessary to do things more formally and you may be asked for a financial statement, listing all your incomings and outgoings, and your proposal for a revised payment schedule.
Be aware that, at this stage, there are very real advantages for you in having a professional Debt Management company represent you.
I'm sure that your first reaction will be: I can't afford this - after all I have debt problems - I have a shortage of money! Think again.
A professional Debt Management company could not exist if there wasn't a way for hard-up clients to use their services! We'll come back to this later.
For now, just keep an open mind and think of this: oA professional Debt Management company puts these arrangements together all day, every day.
oThey know exactly how to put your financial statement together oThey know how to ensure that you arrive at an arrangement you can afford oThey know exactly how to present it to your creditors so that it will be accepted oThey have an ongoing relationship with all the major finance houses, which is a fantastic help oBest of all, the best Debt Management companies will accept a single monthly payment from you and will take on the responsibility of paying all your creditors.
The Professional Solution Yes, you can have an informal arrangement set up by a professional Debt Management Company.
But the single most important factor is that you choose the right company to help you.
Straight Talk about Debt Management There are two reasons why I'm calling that to your attention.
Reason no 1: If you or a family member ever suffers from the stress of debt problems, you need to choose the right specialist to help (choosing the wrong advisor might prolong the suffering and increase the cost).
Debt Management is gaining ever-increasing recognition as the best approach to solving debt problems, including everything from struggling month-to-month to pay your bills, falling behind on your payments, to fearing calls from your creditors.
Understand the facts before you go any further - not all Debt Management companies are the same.
Some Debt Management companies have the experience, the expertise and systems necessary to change your life for the better in a matter of minutes.
Reason no.
2: Debt problems should never be ignored.
Experiencing debt problems and the related stress represents one of the most common causes of unhappiness in this country.
It causes more people more misery, difficulty and devastation than just about anything else, except perhaps influenza.
But, unlike the flu, it's not temporary, and it won't just go away.