You Can Get Debt Help And Relief From Worry

by Ed Yourdon

We’ve all heard the phrase, “drowning in debt.”  However, unless you’ve been in a position where you have more debt than you can handle, you don’t know how horrible it is when you “can’t get your head above water.”  Fortunately, debt help is available, but it will take some patience and discipline on your part.

Debt Help Has to Be Self Help Too

No knight in shining armor or fairy godmother is going to just swoop down and relieve you of all those debts you’ve built up.  Even if the debt burden isn’t really your fault—if, for example, you accrued debt because of being laid off, or a medical emergency, or even a disaster such as a fire or flood—your creditors’ compassion has to be subject to their bottom line.  You owe the money, and you have to find a way to pay it or your credit will be ruined for a long, long time.

“Is my credit record really that important?” you may ask.  You’ll find out when you try to buy a car or house, rent an apartment, or even apply for a job to help pay off those debts!  A bad credit rating is considered to be evidence of a bad work ethic or even bad character, unfair as that may seem.

Declaring bankruptcy is one option, but is isn’t a good one.  It stays on your record for ten years, and even after that time is up, it will haunt you.  Finding a way to resolve those debts is a much better plan.

Debt resolution companies can help.  They will sit down with you and draw up a plan, in which you’ll make a monthly deposit into a trust account.  When that account has built up enough funds, the company’s negotiation experts will work with your creditor and try to negotiate a lower lump-sum payment.  Not all creditors will agree, but most often they are willing to settle for a reduced but guaranteed payment rather than continue trying to collect the entire amount.  Once that debt is cleared, you’ll move on to the next creditor until you are debt free.

Obviously, you can’t continue spending beyond your means during this time, so you’ll need to get rid of your credit cards.  You’ll also need to work out a budget that will allow you to pay for your necessities and your deposit into that trust account.  This kind of debt help will not only free you from your outstanding debts, but instill good fiscal habits that will give you financial freedom for the rest of your life.

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