The miserable truth for a lot of people these days is that they seem to be stuck in a financial hell. They have mounting debts, yet don’t appear to have enough disposable income to pay things off. In some cases, they don’t have enough cash to meet their monthly payment obligations.
Soon, they start to receive demands for payment and letters threatening legal action. As you can imagine, it’s a dark place to be for anyone in this world. With a volatile economy showing little signs of improvement, you might feel there is no hope left for you.
If that paints a familiar picture, I’d like to offer you some tips on how you can escape your financial hell. The process isn’t a quick and easy one; I’m afraid. But, the good news is that you can improve your situation and make your life better.
Stop acquiring new debt
Even if you’ve got a poor credit rating, there is a plethora of “sub-prime” lenders out there that will give you money and charge high interest rates.
There is always a temptation to “rob Peter to pay Paul” but you just end up in a vicious circle. The best thing to do, as hard as it might seem right now, is to stop acquiring any new debt.
Assess your financial situation
The next step is to make a list of all the people and companies to whom you owe money. You can do this on a computer using a spreadsheet, or you can make a list on paper. Be sure to include details like payment amounts, outstanding balances and arrears.
You might be wondering what the object of that exercise is all about. It’s quite simple; you need to see what’s going on before you can devise a plan of action.
Dealing with car finance
One issue that many people have is they seem to end up with cars on finance that are costing them a fortune! Some folks, unfortunately, obtain car finance on impulse without scrutinizing the finer details of the deal.
If that’s something you’ve done, you might be wondering what to do about your car. There are a few options open to you, depending on your situation. First, you could hand the car back if your agreement lets you do so after 50% of the payments get made.
Second, you could always obtain a new car loan at a better rate and pay off the old one. Yes, I know I mentioned that you shouldn’t get new debt. However, if you can find a way of paying less for your car without having to sacrifice it, you should do that.
Websites like http://www.revolutionfinance.com.au/car-loan/ are good at talking you through your car finance options. Just make sure you assess all your car finance options before accepting a new deal.
Seek financial advice
There are plenty of debt charities and organizations that are willing to help you plan your escape route out of financial hell.
For instance, they might advise you arrange a debt management plan. In some cases, it might be better to go bankrupt.
At this stage, the objective is to seek out a plan where you can afford to both pay your bills and put food on the table, as it were. The last thing you want to do is lose your home and your livelihood because of debt.
By following the tips in this article, you’ll soon be on the path to financial freedom.