by Dale Winters
Debt can be a terrible burden as it often creeps up on an individual who hasn’t recognized they have a problem; your financial fate is actually in your hands and to improve your situation you will have to start looking into your options. There are many ways to provide debt relief but whichever you choose, you must have a degree of commitment to being debt free or it will not work. It is essential to manage debts carefully and get rid of them as soon as possible.
The most important thing to remember is not to panic and stay focused as this way your decisions will be clearer and more positive. Whilst many loans can end up giving you huge debts you need to plan to pay them off judiciously.
At this stage you have to be quite brutal and list all monthly expenditure; from this you will be able to eliminate expenses that are not required and might be considered as luxuries. One hard action you will face is to slow down or stop the use of your credit card then start using cash again and you will find yourself being more careful.
One strategy is to set money aside for your debt relief that normally you would spend on non-essential items and call it your repayment fund; although it will take a while to grow, patience is the key to paying debts. You will also find that if you do not eat out as regularly or continue with other types of entertainment then this too can go into the fund and help pay off your creditors one by one.
Although the option of refinancing your mortgage may sound a great way to lower your monthly outgoings and pay off your debts, this is not always the best way so biting the bullet and paying of your immediate debts can be more beneficial. However, prior to adopting this option, think about whether your choice of debt repayment is instrumental in giving you money and if the answer is yes, then will this method be ideal but there are other ways too.
Whilst not an ideal solution to paying a credit card installment, it is possible to withdraw cash to do this providing it is not looked upon as a long term plan. Where the situation is so bad that there are no other solutions, then bankruptcy should be considered but only after an in depth discussion with a debt counselor or a bankruptcy attorney.
Although it can be done, bankruptcy can be avoided by using the savings you have in your individual retirement account is the last method you should ever consider to pay off your debts. There is far too much to lose with this option so you would be better advised to find alternative answers and learn debt relief methods that are more fiscally responsible.