When to consider debt review

There comes a time in one’s financial life, if you’re unlucky enough to experience it, when you simply have to throw in the towel and ask for help.

This is when debt review becomes an option, when you realise that you can’t handle your mountains of debt growing ever-bigger.

“How did you I get into this mess?”, you may ask. Unfortunately it can be all too easy. Living above your means, spending more than you earn, and living off your credit card can all cause your finances to become a crisis situation.

when is it time to consider debt review

But how do you know when to get help? Simple. The sooner, the better. When you find that you just can’t pay your bills at the end of the month and you start getting phone calls from the bank or other institutions – you need to get help – fast.

Apply for debt managementYou don’t want to get into a situation where your assets (your car, your valuable belongings and even your house) are repossessed. This is the worst case scenario, but it’s a real possibility.
You need to get help from a reputable debt review firm. Don’t just answer an ad in the newspaper. Do your homework. Ask around. You’ll be amazed at how many people have gone through the same process as you.

Once you’ve found a reputable organisation, it is time to be totally honest. The debt review agent needs to know exactly how much you owe, and to whom. He or she also need to know how much you earn, and whether you have any other savings or financial products (policies) etc. that can be used to help you out.

What the review company will most probably do, is consolidate all your debt so that you only have one payment a month to make. Alternatively they may also go and speak to the organisations you owe money to, to make a deal with them. This usually entails you paying a smaller amount back, over a longer time. These organisations are likely to accept this deal, as it means that they won’t lose all their money.

Another option is for them to give you a discount. This is usually not accepted as easily as a longer payment period, but sometimes the provider can be understanding of your situation, and might just budge.

Whichever options you are offered, consider them thoroughly before committing. This is your financial future you are dealing with. Get a second opinion, ask you close friends what they make of it. And only once you are sure what you are getting yourself into, go with it.

If you stay out of debt (no new debt – non-negotiable), and keep paying your monthly installments, you may find yourself debt free in a shorter time than you imagined. And make sure to never fall into another debt trap, even if it means cutting up your credit cards.

Make wise choices and don’t go for instant gratification. Plan ahead, save for things you want and you won’t have to deal with this issue ever again.

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