That nobody likes debt is a simple truth. However, our current economic model is driven by debt. From the billions that countries borrow from each other and common resources to the thousands that people spend each year on their credit cards, debt is built-in to our modern world.
But the problem with debt is that it is often easy to lose control of the situation and take on more debt than is physically possible to repay, considering other commitments you may have. In addition, unfortunate events often give rise to unwanted but necessary debt. From insurance deductibles and co-pays to unexpected expenses, an average person’s books are a delicate balance between income and expense. If that balance is upset for any reason, the downward spiral to uncontrollable debt starts to happen.
How Can I Recover from Huge Debt?
It is definitely an unpleasant experience dealing with unpaid debt; the problem impacts nearly every other aspect of your life from your mental well-being to your future employability. Since your credit rating is linked to every major financial transaction you will ever make, a dip in that is akin to being hit when you’re down. The double-effect of debt and poor credit can often send people into bouts of anxiety and affect family life as well.
Recovering from debt is all about evaluating, planning and then executing. The first step is to eliminate sources of further debt. If that means cutting all of your credit cards in half, by all means do that. If your gas-guzzler of a car is the source of your debt, get rid of it and take the bus instead. If your lifestyle habits are the source, make some drastic changes to control further debt. However, this is only a first step; the only thing that will help you at this point is negotiating a new payment plan with your creditors. A professional debt management company can help you do this, but you have to be up-front about any existing debt and all sources of income so they can help negotiate on your behalf and chart out a new payment plan for you.
Why Do I Need a Financial Planner?
A financial planner can deal with the debt part, but more important than that is your future financial health. Dealing with a fire is only a temporary solution – the real answer is in making things fire-proof to whatever extent possible. A company like Your Financial Life is dedicated to making this happen for you. Click here to find out more about their services, and reasons to use them. They will guide you through the maze of financial planning and draw out a new game plan for your ultimate success.
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