Simple Approach to Reduce Debt and Maintain Quality of Life
Simple Approach to Reduce Debt : It’s very difficult to have a secured peace of mind when one is struggling with debt. But it is possible by following a simple plan that will ensure that debt does not spiral out of control and the scourge of bankruptcy does not fall upon my family. I have been using this simple approach for more than 10 years to fix my debt. I have simply made the decision that I am not going to live in fear of creditors anymore. If something needs to be done, I am not going to put it off for another 7 or 8 months and I am not going to pay someone else to do it for me, fearing there is nothing I can do.
There are four broad categories one should cover when dealing with debt:
One should cover those with unsecured debt. I have been careful not to get into arguments about unsecured debt because I realized early on that any debt related to a business was, by definition, unsecured debt. Of course, a home mortgage or car loans are obviously secured, but anything that is not tied to an asset is unsecured.
One should cover revolving debt. All of my revolving debt came from my American Express Platinum. This was all I could get for me and the only one I could get was not enough. People, who study finance, like to argue that the debt they have today is not unsecured debt but I beg to disagree. The debt I have is because I made money work for me (investing it) and used it to pay my bills (earning it). If a company can make money off of selling you merchandise and credit cards isn’t unsecured, then what is it that makes making money work for you? The main difference is that when you make your money work for you, you get emotional satisfied at your end, which is what we all want.
The third broad category I cover is credit cards. This might seem like a main category to have in the solution but I hope you read on.
So, is a new credit card really going to solve your problems? It might but I believe it will take a few years. That is how long it will take to repair your credit because, as was stated earlier, unsecured debt is the only debt we can get out of. This means it will take some time and possibly a few mistakes on your part to get it back where it belongs. After 2 or 4 years it will be so much easier to get a credit card and get the credit cards you want.
I cannot tell you what solution is best for you. But I can tell you that it will take time, discipline, and a budget to finish the process of repairing your credit.
Of course, communication is a key. (When was the last time you had communication with your creditors?) Do not be afraid to pick up the phone and talk to someone. Someone is always there ready to help and of course, to answer any questions you may have. By having communication with your creditors you may be able to come up with an arrangement that is beneficial to you. Understand that the creditors still want to get paid.
Another big contribution to a credit repair is time. You do not have to re-buy books and reports and do everything you are told to do every day. You do not have to sit in meetings all day. See it for yourself and be patient.
It is not hard, but it takes time. But I hope you will see the value in your livelihood because it will enable you to do the things you want to do such as travel, sit and talk with your family, and most importantly get back to a life that is free of debt which will avail you the value of a fine life.