ClearUpMyDebtNow
Is It Time To Answer The Phone?
Are you someone that’s ignoring the phone unless you know who is calling due to creditors harassing you for money? A lot of people get so overwhelmed that they ignore the phone instead of dealing with their creditors. By doing this, you’re only hiding from your problems and that’s not going to help you. In fact, it’s going to make things worse!
Face The Music
By facing your problems as soon as possible, you’ll be much closer to overcoming them. Of course it’s not pleasant to deal with creditors when you have to throw yourself on their mercy because you can’t pay your bills but it’s not going to help your situation to ignore that call either. Things will only worsen. By not making contact and notifying your creditor of your intentions, you risk the next step happening before you get a chance to fix things and this can do damage to your credit rating, cause lawsuits, foreclosures, and repossessions to happen.
Get Some Financial Help
If the idea of having to deal with your financial problems on your own is too overwhelming, consider getting some help before it’s too late and you have to file bankruptcy. There are services available that will facilitate things for you so that you can deal with one individual who will go ahead and contact all your creditors individually on your behalf and make payment arrangements for you.
Help such as credit counseling, consumer proposals or maybe even a debt consolidation could be the answer to your problems. Getting back on track will take time and effort but by dealing with your money problems now instead of continuing to ignore the phone, you’re steps closer than you were yesterday to living without financial stress.
Budget Downsizing Tips
Is it possible to improve your financial situation without giving anything up? No.Downsizing is a vital step in getting your finances under control. It’s going to help set you free and soon you can buy the things you want guilt-free because you will be minus the stress of a huge amount of debts.
Those having problems can be worried about losing everything. You don’t have to neccesarily file bankruptcy but if you want to find another way out, you’ll have to make some lifestyle changes.
There are often options besides bankruptcy such as:
- debt consolidation
- credit counseling services
- debt settlement options
Changing financial habits and downsizing are the first steps to improving your financial situation.
Following are some tips that can dramatically reduce your monthly expenses, at least temporarily.
- Don’t rent things like furniture or electronics. If you have any bills with companies like this you need to cancel the account and return the goods. A lot of these companies charge upwards of 30% interest!
- Downsize your car payment, especially if you’re leasing an expensive SUV or luxury car.This will reduce your payment and can reduce your gas expenses!
- Downsize your mortgage. Many are house poor due to a huge mortgage. It might not be the best time to sell your house but you need to look at your options to get out of a financial hole. This might mean getting a less expensive place to live, moving in with family, or having family or lodgers move in with you to help you manage your household expenses
- Make a budget and stick to it.
- Stop the lavish habits like Starbucks, the movies, going out to dinner.
- Cancel membership fees for golf clubs, fitness, spas, at least for now…
- Downsize at home. Eliminate or at the very least, downsize your cable, internet, and cellphone usage to reduce monthly bills
Use Your Common Sense
Some small sacrifices could equate to big differences in your financial situation!
The Budget: Your Best Financial Friend
This post is especially written for those who have recently done a debt consolidation. Whether you’ve done it or you’re considering consolidation, the first thing you need to do is set up a budget.
If you want to lose debt, a debt diet is in order. While it can take a bit of time to adjust to a new budget, it’s imperative for changing your finances for the better.
When adjusting to a budget you might first feel a bit of deprivation because you may be very accustomed to spending freely but in no time at all, your new budget will become second nature for you. When you start to see a dent in your debt load, you’ll realise quickly that this budget is your friend and not your foe.
Those who have done a recent consolidation loan should definitely go on a tighter budget to ensure that they can get out of financial difficulty. And it’s about to get easier for you because you’ll have one monthly payment instead of several to make for your debts. .
A consolidation gives you a new opportunity to be financially responsible. Hopefully you won’t make the mistake many make of not changing their spending habits. For example, you need to cancel your credit cards and reduce your variable spending budget otherwise you could end up in even further trouble not too far down the line.
They say that new habits can be formed after a bit of repetition so repeat the following habits to help you get debt free:
- Budget either by the week or by the month and stick to that budget
- Don’t make impulse purchases
- Clip coupons
- Don’t buy anything on credit.
- Top up your payments on your bills to get ahead of the game. P
- Pay utility bills promptly to avoid late fees and interest charges
- Start an emergency fund