Chinkee Tan
Have you experienced any of these?
Waking up in the morning to see text messages about your loans.
You can already be phone-pals with the credit card collection agent with the frequency of his calls.
All your income and salary just go to paying your debts.
You can’t sleep at night from thinking of how or where to get money to pay off your debts.
Having an income that falls short is a sad situation to be in, but there is nothing more tragic than if you are already at the end of your rope or up to your neck deep in debt. It is not just a road block but a dead-end. No detour, not u-turns.
Even if you want to pay up, you really don’t have anything more to give. They can search your house or drain you dry, but they will not be successful in getting any single cent more out of you because there is simply none.
When this is your situation, what more could you do?
Here are my suggestions:
FACE YOUR CREDITOR
You cannot pay off your debt if you run away or hide from it. Don’t run away from your responsibility. Face it. Personally talk to your creditor or the person you owe money to, to let him or her know your real and honest situation.
BE HUMBLE
You should learn how to humble yourself. Let go of your pride. More often than not, the person who is in debt is usually the one who has the nerve to be angry. This will not help you or your situation, but would instead annoy your creditor the more.
WORK OUT A PLAN TOGETHER
If you don’t face your debts, this will just become a bigger problem and your debt will just grow bigger and bigger because of the interest. Work out a plan with your creditor on how you can pay off your debt in a more manageable way. Let them know your timeframe, your limitations, etc. For example, if you owe P12,000 and can only afford to pay P1000 per month, then commit to pay up for the next 12 months to complete your debt payment.
NEGOTIATE
If you still find yourself having difficulty paying up, despite your agreed plan, then talk to your creditor again. Admit your situation, don’t ignore it and don’t hide it. Find out if it is still possible to lessen the monthly amount, or lengthen the payment schedule.
This is effective especially among credit card debt settlement. Collectors allow creditors to negotiate with (or collection agencies) to reduce the amount they owe so that they can pay something and get back on their feet.
And if you have come to an agreement, you need to follow through.
BUDGET
If you already have a budget plan, evaluate and reconstruct it. Explore ways to reduce spending and expenses — and if possible, increase your income — then revise your budget accordingly. If you need to cut on costs then do so. Make it your priority to pay off your debt. You will need to set aside your wants and other luxuries.
It is not true that you are at the end of your rope. There is always a way to get out of debt, so don’t lose hope. If there’s a will, there’s a way.
SEEK COUNSEL
Look for a professional finance expert and ask for his/her advice. Ask about a good strategy you can follow to lessen and eventually erase your debt. Ask anything you need to ask about your situation.
THINK. REFLECT. APPLY.
Are you avoiding your creditors or do you face your debt problems?
Are your tired of looking for ways to pay off your debt?
To know more how to get out of debt, please watch this free video www.moneykit.com.ph
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