Shouldering Debt By The Keep Calm And Carry On Method
Debt isn’t the end of the world, even though it’s a place where we wouldn’t like to be. Most people at one time or another will be in debt of some kind. Whether it’s a simple bank overdraft, or possibly even falling behind on mortgage payments. It’s a part of the everyday financial world, and banks and loan companies know that. They won’t rip your head off just because you miss a payment or have trouble finding the money to make credit card payments. They have already factored this possibility into their agreement with you and thus there are mechanisms you can use to slow things down. The first thing you need to realise is, that time is on your side. Even though on paper it might say you will need to make ‘x’ amount of payments in ‘x’ amount of time, creditors know that this is just for setting the parameters. So think clearly and be calm.
Face to face
Firstly, don’t allow debt to creep up on you. Creditors will be ready if this happens but you should let them know that you are both reading from the same book, same paragraph and same sentence. So, book an appointment with the bank or loan company to meet them face to face. A representative from the financial advice department is the person you’re most likely to meet. Inform them of the situation, and tell them your circumstances that have brought you to this point. The creditor will be pleased that you are aware of the situation and have been grown up enough to come and work things out. Usually they spend half their time chasing people around trying to get some kind of acknowledgement of the situation. Now you can change the plan of payments, perhaps decrease the amount owed per month, extend the timeframe, and make sure you could be still eligible for another loan somewhere else by protecting your credit score.
Mish-mash the cash
Debt can often snowball, it’s the merry-go-round of the financial world. Rather than focusing on each payment that you owe, it’s far easier to just collate everything into one wholesome payment. Work out on a debt repayment calculator how much you would owe less per month if you were to utilise different methods available to you. One of them could be debt consolidation, which takes all of your existing payments and forms them into one. Not only that, but the payment per month decreases but the months and years are increased. This mish-mash is great for someone who has different kinds of debts such as mortgage, credit card, car loans, and collaterals also. Now all you have to do is focus on meeting one smaller payment each month and each of your creditors will slowly get off your back about it.
Much like when you’re stuck in quicksand, the more you panic the faster you sink. Debt is not the end of the world, and actually it’s perhaps the most common misconceptions in the financial world to the average citizen. Time is on your side, all you need to do is to form a new plan and stick to it.