At some point in our lives, we all will suffer from the bill collector knocking on our door or even repossessing our car. Even if you were born with a silver spoon in your life, you could easily have problems with debt over time. Just look at some of those actors that have made hundreds of millions of dollars but then have to declare bankruptcy down the road. If they can’t make do with that much money, what chance do the rest of us have? If you are falling in debt at this moment, there are ways to combat against it without having to file for bankruptcy or live out of your car.
Simplify Your Life
Is there a reason you bought the most expensive car you looked at or decided on the huge house that has the biggest mortgage? Probably. You suffer from having no will power at the moment. All of that can change though. Reduce your debt, save your money, and before you know it, you will be experiencing financial freedom. When it comes down to it, having expensive things is nice, but being able to get a good night of sleep is much nicer.
Consolidate Your Debts
If you have six or seven loan payments to make every month, you are getting killed by interest. Very little of the principal may be going down just because your interest rates are lousy. Young adults are experiencing this once getting out of college. They may have $30,000 in student loans and they are making all of their required payments, but the principal only goes down $200 every year. Contact your bank and ask them if you can get a debt consolidation loan. This will combine all of your debt into one loan and it should not take as long to pay it all off then.
Sell Your Settlement or Part of Your Business If Needed
might be facing debt because your business is not doing so well. You could
always contact investors and have them purchase a percentage of your business
in exchange for paying off your debt. It happens more frequently than you might
think. You might make the decision that “I want to sell my judgment” instead of facing a life of debt
collectors pestering you all day long as bankruptcy is just around the corner.