When you are healthy and you have a job, it seems that this will always be the case. And we plan our actions for the near future, based on the idea that nothing will happen to us in the future. And we do not notice that we do not have a solid Foundation, an airbag that would help in a difficult period. And just as frivolously we take on debt obligations, not really thinking about how we will pay them all back. It happens that even yesterday, a seemingly calm and prosperous life suddenly turns into a nightmare, provoked by debt on loans. But there is no reason to despair if you make decisions correctly and carefully.
Calm, only calm
If your loans have turned from convenient tools into a stranglehold that is constantly being squeezed, it is very difficult to remain calm. However, it will be your only chance to get out of this situation with any dignity. You should be confident in your actions, and be ready to protect your interests even under pressure, armed with a credit report and payment cards.
Don’t you feel confident? You can always go to a consultation where you will be explained at least the basics of what is happening and how the situation can develop. Now it is the awareness that will give you the confidence you need. Do not panic and do not take rash steps.
Bankruptcy as the last step
During a period of stress arising under the pressure of credit debts, the idea of bankruptcy becomes more and more attractive. It seems that this is a way to once and for all cut this knot of problems that you have so long and diligently tied. And few people think about how this procedure occurs and what its consequences are.
If you have at least some stable income, but for some reason, you can not or do not want to negotiate with your creditors, you can contact the same agencies that deal with bankruptcy, but with a request to help draw up a settlement plan for your settlements with creditors. Yes, you will have to pay extra. But for this money, your representatives will agree with each of your creditors on a repayment plan that will be feasible and acceptable for you.
The obvious advantages of this approach are that intermediaries will work directly with the organizations or people you owe money to, and not with collectors. They will be the ones to discuss interest freezes, fines, or new repayment schedules.
If you decide to pay off your loan debts yourself
To start, recalculate your financial capabilities. If you have a mortgage, you can try to arrange a credit vacation. This will allow you to focus on other debts and exclude the largest payment from calculations for a period of 3-6 months.
If all your debts are consumer-related, you can still try to consolidate them. That is, combine it into one with a rate lower than the average rate for your current debts. There are always solutions to the problem, and this is what you should remember to look for them and choose the most acceptable, and not to panic and let the situation take its course.