Debt stress could be a most annoying thing whether at home or in the workplace if it is not confronted in good time.Most people lack the right approach,the professional tool to go about the problem whenever it roars its head.Truly,it is not an everyday problem,but even then,a once-in-a-month migraine is not a good idea afterall.
The issue of debt repayment is very vital in the life of many households and business organizations in the US and all over the world.Many people and businesses thrive on credit to weather the storm of daily living and business alike.And when it comes to the point of facing the creditors,the whole show becomes a big game.Realizing that debt repayment is the opposite of credit acceptance is the best strategy to claiming financial success.
In tackling a debt repayment problem,in many cases,the most natural option that comes to most people is bankruptcy,a way to manage your finances by submitting yourself and the details to the government.It may also be perceived as a proceeding in which an insolvent debtor can obtain relief from payment of certain obligations.A person’s ability to borrow is severely limited because bankruptcy remains on a credit record for seven years.Bankruptcy is a legal process in which people who cannot pay their bill can get started again.In America,Congress overhaul the bankruptcy system in 2005 to stem the tide of filings.
But,is bankruptcy the only option available to an individual or business organization?Definitely no.In fact,where good management practises is in place,it should be the last resort.The following are the practicable options to debt repayment in line with good management practises:
1.Accept debt management practises
Learn to accept debt management practises as a way of life.The earlier everyone knows this,the better for everybody and the society at large.If credit is that important,then what makes debt to be anything less.Reality is a one face man.Debt should be perceived as a reality rather than a devil on the rooftop.The energy you get is reassuring that all is going to be well and a booster.When you accept the reality,the inevitable comes your way.When you believe that debt and credit transaction are inevitable part of a business,and you learn to master the art of manouvering over them anytime they come your way,then you are in total control of your finances
2.See a professional debt repayment advisor
This is perhaps the next step to take after accepting debt management practises.There are debt repayment advisors in every community.Use the service of one in your local communty.To get a good deal on a free checking account,look for one with a no low balance fee,free Automated Teller Machine(ATM) or debit card,no charge for Automated Clearing House(ACH) and direct deposit transactions,free unlimited access to your account,unlimited monthly checkwriting,and no minimum checkwriting amount.However,a disadvantage of free checking acount is that no inteerest is paid on your money.
3.Use a debt repayment worksheet
Analyze your debt situaton by getting down to some paperwork.A true picture should come out after 30 minutes to 1 hour or so.Write down on paper the name of each creditor you are owning and the amount owed.List them out in both ascending and descending orders of magnitude.Verify and make sure the data are exact.These are your debt repayment worksheets.
An ascending order debt repayment worksheet has the debts arranged with the lowest value at the top.Where the interest is lowest for the topmost debt,it is best to start the repayment process in this order.
A descending order debt repayment worksheet allows you to start repaying your debt starting with the one having the biggest value.This may be your choice if the interest on the big buck is so high,far higher than others on the list.A variation of this is what is called the “credit repair planner.”The planner is an educational tool and will break your lot into two repayment schedules:first,to get all cards down to 50 percent;and two,to take them down the rest of the way.
Begin negotiation with your creditors.Great communicators the world over will always communicate their way to progress.If you make it a rule in your life to always use the communication strategy whenever you are financially down,then you will go a long way to ease out the problem.Understand that your creditors still loves you,they still want you,and for two good reasons.One,you are still considered a very important customer of the business.Two,good management practises demand that to a business organization, finding a way to rectify the problem is far more better than victimizing or losing the client.
5.Get a job
If your debt situation has rendered you unemployed,never mind,get or create a job for yourself.Why should there be a gap in your work history?Look around yourself and put down all the skills you have.Brainstrom.Can you fix a roof?Can you tutor a child?Have you ever been a chimney sweep?Do you know how to use a lawnmower?Can you barb with precision?Or can you supply some of the needs of a university community?Even,Henry Ford did some sawmilling jobs to maintain his young family on his way up.What’s more?Pick up one of your useful skills and reconnect.Dress up your attitude.Take I cannot do this job out of your dictionary.Look out for the first contract.Experience has thought me that the servicing business is perhaps the best option out.Your skill could translate directly to cash.You can rise again.
6.Take debt consolidation loan
Debt consolidation is a way of combining multiple loans into a single buck with a lower monthly interest rate.A debt consolidation loan has several advantages.One,it may have a lower interest rate than the rate you are paying on credit cards and other unsecured credit,
and so reduce your interest payments.Two,many payments each month is replaced with only one payment allowing you to budget a fixed monthly payment a month-the real key to debt elimination.Three,you should be able to reduce your total monthly payments,with either lower interest rates or extended terms,or a combination of both.
To qualify for a debt consolidation loan,a collateral such as your house equity is required by the lender,a monthly budget sheet prepared by yourself or via a professional to determine if you can meet the loan payment,and you must be working,or have a source of income to allow you to repay the loan.
Submit your documents to a certified lender.Contact one in your community or do online search to obtain what you want.
7.Buy top selling stock
Do not let your repayment problem bug you down.Get some education on how to trade profitable and short term stocks.Learn how to buy micro cap and small cap stocks with momentum.See any professional stockbroker in your community or via online search to iron out issues.The little
balance in your savings account may walk you back to fame.
8.Buy a franchise
A franchise is a good fit because you are associating yourself with an established business,seasoned and tested to be recession -proof.By selling their business ideology in the form of products or services,you can make a lot of cash and on a continuous basis.You could get some franchise for as little as under $10,000.Do some research online.If a creditor should hear you are into a franchising business,bet it,the creditor will take a new look at you to start a new negotiation.
9.Try forex trading
Trading foreign currency online is a reliable way to move yourself out of debt,but only if you could master the art and thoroughly too.Imagine making a profit of $1000 in just 45
minutes trading a currency pair like GBP/USD with only $200.Its amazing how well you can turn things around and make your creditors shake with fear.Train yourself for free or get an online forex broker to show you the way.This is no scam!
As a last resort,when everything else seems not to work,file bankruptcy.Bankruptcy law varies from state to state,so you really need to know the situation with your own state.So,make an online search to get a bankruptcy service agents that best suits your need.There is always an online evaluation form to fill,in order to match you with a local bankruptcy attorney in your area.
Debt repayment is no longer an issue,as there are numerous options out there to explore.Truly the American government overhauled things since 2005 to pave way for better utilization of bankruptcy,but it should be remembered that the filing information you provide stays in your credit report for upwards of seven years.Other methods exist,which could outperform bankruptcy when used alone or in conjunction with others.They include accepting debt management practises,contacting a debt repayment advisor,using a debt repayment worksheet or a credit repair planner,negotiation,taking debt consolidation loan,buying top selling stocks and franchise,and trying forex trading.And if nothing works,file bankruptcy.