Free Personal Finance & Budgetting Articles

Professional Authors - Professional Articles

How You Can Fix Your Debt Problems

When you don't have enough money to pay your bill every month, this is definitely not a good thing. When you get into this situation this is when you start falling behind and eventually you begin to miss payments or may even stop paying on certain bills all together. However this is a horrible thing to do and could end up in bankruptcy. If you don't want to end up in bankruptcy and you are motivated enough, you may be able to repair your bad credit on your own.

One of the most important things you need to remember when you want to repair your credit is that you must learn to spend less. Spending too much after all is what got you into this situation to begin with. So, this could be difficult to do especially since some overspending has nothing to do with your own choice to over spend. Sometimes the over spending comes from emergencies like medical bills. Lucky thought that emergency spending doesn't happen all the time. It's the over spending that you personally do by choice that needs to be addressed.

Take a good look at what you owe and then take a look at what you make. If it turns out that you owe far more than what you make then you are going to need to take steps to fix this as soon as possible. You can't just sit there and think about it. This is going to require immediate action.

General rule of thumb is that you probably need to make about 10 to 20 percent in income over what you owe in bills to be able to get your debt caught up. So this means your target should be to get some extra income that will cover that percentage needed to help yourself to rise above the debt. This means you might have to take on a 2nd or 3rd job then so be it. It's a far better way than filing for bankruptcy. By doing this you might be able to get rid of some of the smaller debts quickly. Remember you don't want to be damaging your health while you are trying to fix your debt issues. So, you are not going to be wanting to work all of these extra hours for too long of a period of time.

If taking on more work is not going to help the problem then this means you can't sit around and mope about it, you need to take action. So what you should do now is start calling all of the people that you owe money to and see if you can't get them to at least reduce the interest on your loans. You should even try to get them to come up with a different payment plan in order for you to be able to get them paid. This type of thing can give you some temporary relief and give you a chance to get caught up on some of your debts. If you own a home you might also want to see if you have enough equity in it to take out an equity loan and use that to pay off all of your debts and then you will just have the one loan to pay back.

If your creditors are not willing to work with you and you can't get an equity loan then you may have to break down and contact a debt management company. They will be able to figure out if they can work with the creditors or not, or if you will have to file for bankruptcy. They are trained to be able to help you learn how to repair your own credit.

Yuette Bramante commented on 06-Sep-2015 11:04 AM
Wow, Brilliant information.

Fat Loss Diet commented on 18-Jun-2016 01:53 AM
This is excellent content. One of the best posts I've discovered at present. Carry on the good work.

Post a Comment

Captcha Image

car tight budget community property health insurance managing time home loan party supplies medical history self help new car smell grocery shopping debt management company need maternity care va loan possibility owe money unsecured loan afford a car test drives medicare finance tips planning interest rate voluntary stop procrastinating specials personal finance fast paced common estate planning bankruptcy budget overspending car payment quick sale secured loan dream local dealer time management discounted items cash grocery list estate planning errors financial issues legal power bad credit buying a home credit policies getting a loan money issues veteran loan payroll car sites printer cash flow income tax payment range trade in value leasing company gross pay car insurance quiet time present car gross income coupons poor credit finance tips sticker price credit score certain stocks secure finances manager specials personal finance tips banners payroll software package personal bankruptcy rebates loan possibility assessor estimate getting health insurance money conscious reduce interest different models emergency spending debt management major financial issues attorney lease takeover car loan spend less reality income insurance company qualified veteran car finance financial affairs finance company financial power store ads reduce tax salvage groceries employees family member W-4 forms structured settlement miss payments household tips retirement fund car dealer estate planning lawyer car payments compare prices invitations car lease enough money dealership debts pay bills half price stop paying law firm improvement loan personal finance resources own business new car property value creditors handling problems best credit financial crisis get rid of debt major debt research make a will deductions car lot home improvement loan saving money good credit actual loan lower tax financial agent financial basis balloons homemade food enjoying credit meat specials computer right estate planning lawyer insurance retirement planning mortgage payments estate planning home equity loan start investing shop online birthday party save money retirement years payment plan personal finances finances get help true market value chapter 7 avoid personal bankruptcy stock market debt settlement decorations party theme net pay repair credit sticker shock social security number power of attorney top preparing dinner wills periodic payments property tax

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs