What to do when you feel like you are Drowning in Debt
Being entangled in debt is one of the worst feelings ever. It can ruin your self-esteem, and the pressure you get from creditors can depress you. It’s even worse when you have to keep ducking repo guys who may show up at any time and disposes you of valuables.
If you are in such a situation, don’t give up, as there is hope. Here is what to do when you feel like you are drowning in debts.
#1. Accept your situation
The first step to getting out of debt is to accept your situation. By accepting that you are in bad shape, you will be better positioned to strategize on how to get out of debt. With self-acceptance, you can take a step such as taking up a second job in order to grow your income and repay your debt. It’s a step that can make all the difference between dusting yourself off, and living in self-pity, even as creditors close in on you. Like in all other aspects of life, attitude is the key to getting out of debt.
#2. Hire a good bankruptcy lawyer
Ever wondered how rich people tend to declare bankruptcy, and still stay rich? Well, it’s because they have a good understanding of bankruptcy laws, and have the services of good lawyers. With a good lawyer, you can get to keep most of the things you value, even when creditors come collecting. That’s because lawyers understand the different protections that are available under bankruptcy laws. For instance, if you live in Philadelphia, a top bankruptcy lawyer such as David Offen can help you cancel credit card debts, personal loans, and other loans and still keep your home, and other valuables.
#3. Work on consolidating your loans
Part of the reasons why people find it hard to get out of debt is the high-interest rates on short-term loans. With such loans, you could be making all your payments, but the debt remains the same. To get out of this situation, you need to work on consolidating your loans into one long term loan. There are lots of debt consolidators that can help you out with this process. By consolidating your loan, you will get the breathing space to plan better, and work on getting out of debt in the long run. With a single, low-interest rate loan, you will also be better motivated to work on making payments. That’s because there is a clearly defined end to your debt troubles, so long as you work hard at it.
#4 Begin Rebuilding Your Credit
Consider different ways of rebuilding your credit once you have declared bankruptcy and reached a position where you feel you are able to consistently meet a recurring payment. One of the most practical ways to do this for many people is to qualify for a bankruptcy car loan. These loans are designed to help those who have recently declared a Chapter 7 Bankruptcy to get back on their feet and procure reliable transportation.
#5. Work on improving your skills
Once you have followed the steps above and have a clear repayment plan in place, it could be time to work on your skills. With a higher skill set, you stand a better chance of earning more, and this can help you repay your debts much faster. Besides, with a better skill set and a higher income, you are better positioned to become financially free. Financial freedom means you will be less prone to getting into compromising debt positions in the future.