At the climax of the great recession of 2008, the era of high debt levels finally came to an end. Just before that, the world was really in a tailspin. Panic selling set in everywhere and before you knew it, banks and creditors started banging on millions of doors demanding that folks start paying back the money. This was determined to be quite unfair and harsh. In fact, many highly indebted folks lost the roofs over their heads as a result. Now, this is not a finger pointing exercise. No-one is here to judge because we’ve all been down that road at some stage of our lives.
It does not matter why you got yourself in this jam in the first place. What matters now is that you’ve finally got an opportunity to start paying off those debts that you are legally obligated to. Your current situation is highly unmanageable and it’s impractical for all stakeholders, especially the creditors. While they’re not seeing any monies trickling in, you still have your rights as a consumer. Gone are the days when armed musclemen can come pounding on your door demanding that you pay up.
After the twenty-eight crash, the government of the day got the ball rolling to help out folks just like you. It’s written somewhere that you, as a consumer, still have your rights. New legislation has been set in motion to safeguard you against those unscrupulous lenders. But then again, the same legislation also dictates that it’s no longer going to be easy for you to run up debts like you used to. If you are even thinking of taking out another loan or applying for another card, expect to be turned down.
Don’t be disappointed because it’s all for your own good. The financial advice is to try and settle your debts as quickly as possible before thinking of financing or purchasing something new. One of the best ways to start cutting your debt in half, and then finally getting rid of it altogether, is through debt consolidation. What happens is that all your outstanding debts get lumped into one monthly repayment schedule. It is straightforward and eliminates a lot of confusion and stress. However the interest rate is arranged on this, you’ll only be saddled with one interest rate worry.
But in order for that to happen, you’re going to need to get in touch with your creditors and let them know what you propose to do going forward. Getting them to suspend or freeze interest loadings, however illegal it was before, is not so easy for you to manage on your own. A good calling card for you at this point in time is to get in touch with a debt counselor, debt management consultant, financial adviser or planner. These agents should be accredited and properly vetted to help you. Your financial planner can also advise you on how you can start saving again.