Many Americans are, unfortunately, living with a mountain of debt. And with many people losing their jobs, it's more important than ever to keep the amount you owe down to a bare minimum. Unfortunately, creditors are seldom merciful when it comes to getting their loans repaid, and those bills will just keep on showing up in the mailbox whether you are working or not.
If you are presently in the position of drowning in debt, don't wait to act! Playing possum and pretending the problems aren't there won't make them magically disappear. You need to work to consolidate and eliminate what you owe quickly before interest and penalties and bad credit ratings loom up in front of your face.
Most of us don't have a clue as to where to begin when it comes to addressing our debts. A great solution is to seek advice from a credit counselor. This financial professional and his team will meet with you, go over your money issues, and work out a repayment plan that you can live with that will help you resolve your present crisis. But in order to avoid future trouble, you may need to change your lifestyle and your spending habits. You need to begin now: it's never too late!
First of all, resolve to live within your income. This means paying cash for all expenditures and never, ever using a credit card except in extreme emergencies. By the time all of your bills are paid each month, you should have 5-10% left over to squirrel away in a savings account or somewhere else where your money can grow.
The only loans you should have are for a home mortgage, and possibly your children's college education. This may mean no more buying new cars, and this may mean buying a smaller home than you intended. You should be able to purchase a good used car with cash, and that will probably mean waiting longer to get it, but you won't have to face an outlandish car payment each month.
Staying out of debt will allow you to sleep better at night, knowing you can afford to stay in your home, take care of your family's needs, and even have a little extra in case of emergencies at the end of each month. All of this with no creditors calling at all hours or coming to repossess your belongings.
Adjusting to a debt-free lifestyle requires some sacrifices at first: you may not always be able to run out and buy a new pair of shoes every time you want one, nor will you be in a position to show off that brand new sports car to the neighbors. But the peace of mind that comes from living frugally is priceless: once you've gotten rid of that mountain of debt, you'll never want to go back there again.
About the Author:
If you are facing debt problems and think you may benefit from
credit counseling, contact the professionals at DebtGuru.com (http://www.debtguru.com/credit_counseling.html). Art Gib is a freelance writer.
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302
Date Published :
Feb 6 2009