Financial Fridays – Debt Strategies
Keeping a good credit rating in this age of Virtual Finances is crucial. And there are many ways to keep credit buoyant without having to use it all the time. But what happens when adversity hits? Survival is necessary and sometimes we need to make hard decisions. As overstated as it sounds: Survival comes first. Unfortunately, there are so many people that will literally become physically or mentally ill, lose a job or destroy a relationship all in the name of money or credit. Some even go without their medication in order to keep up payments on a credit card that no longer is useful to them.
Before heading into private ruin, consider the following options. And remember, one can come back out of financial chaos. Most of us do that at least once in our lifetime.
When it comes to Dealing with Debt, here are some important questions to consider:
• Can you consolidate high interest cards into a loan or into the mortgage?
• Can you transfer to lower interest credit (such as a Line of Credit) to consolidate?
• Can you borrow from friends or family keeping it a strict, formal business deal?
• Can you offer the creditor a settlement yourself (be careful – get it all in writing)?
• Should you call a Ministry licensed and accredited Credit Counselling Agency?
• Would Bankruptcy, although a last resort, be the new beginning you are needing?
• Can your creditors really do anything to you? If on pension, it is unlikely they will garnish. Never keep your money in a bank that you owe and cannot pay.
• Are you willing to go to court to have a Judge order an amicable solution?
• Will the offer of a Lien on your home give you the peace of mind that the debt will be honored one day while stopping the harassment?
As you navigate your debt, its important not to lose hope. Pulling yourself out from debt is possible. Don’t give up!