The following guest post was contributed by Greg Pesetsky.
The article provides information on different approaches to debt relief. Its provides the truth and has tips on how to prevent becoming vulnerable to debt.
President Greg Pesetsky founded Practical Debt Relief in 2008. Pesetsky has been in the debt industry since 2001 and ran a large BBB Accredited Debt Consolidation Company “Debt Management Credit Counseling” prior to opening Practical Debt Relief.
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Time, the laws of physics, and the past all share one attribute: they cannot be changed or prevented. Fortunately, the same cannot be said for getting into debt. The main reason people fall into debt in the first place is that they aren’t sufficiently prepared. The preparation can be in an emotional sense, a physical sense, or in the typical financial sense. With the amount of knowledge and advice on the market today whizzing around through cyberspace, it’s tough to make the case that guidance was nowhere to be found. Everyone, no matter what their financial status, can prepare themselves in some way to prevent a potential fall into serious debt.
Now, no one ever escaped getting into debt by just thinking constantly about it (As far as we know). Fortifying your financial defenses involves more than just worry and an awareness of vulnerability. One must engage in one of the most feared tasks in personal financial management: coming face to face with one’s budget. Without a realistic assessment of your financial position, you are essentially going into surgery with a blindfold. Unless you’re from the House School of Medicine, it’s not likely to turn out well.
Though steps can always be taken to help keep debt at bay, there remain instances in which the flooding can’t be controlled. While most people would tend to jump off of the boat in panic at the moment some water enters, few are aware of the plethora of options that they have in deciding how best to save themselves.
For starters, try calling your creditors yourself and explaining your particular hardship. In most cases your creditors will be willing to cut your interest rates just the same as any debt consolidation company can. They much rather work with You, the borrower if possible. You have to take the first step though, so pick up the phone and call already!
The options of our ancestors were limited. They basically had to choose between bankruptcy and indentured servitude to pay off debts. Though we probably all know some college graduates who might just consider a bit of indentured servitude to help cover the cost of their student loans, we’re lucky in that we have so many more options at our disposal.
To start with, you still have the option of bankruptcy. That shouldn’t come as a surprise to many people considering that hundreds of thousands of people jump on the bankruptcy filing bandwagon each month. For some it’s their only hope, but for far too many it’s a desperate and a premature way out.
That type of brash decision-making is even more upsetting when you take a look at the array of other options out there. Things like debt consolidation and debt settlement became lucrative heavy hitters to the financial market when the housing market crumbled years ago. However in recent months it seems that their popularity has started to fall as more and more people become aware of them. The important thing is to understand that both those options have negative consequences as well. Just make sure your aware of them before some Con Man sales guy paints the picture of the “easy get out of debt button”. It doesn’t exist!
The best option is to be aware of different ways in which you can prevent yourself from ever having to entertain any of these choices. Start by taking your own detailed budget and live within your means. If you’re already up to the hilt in debt then start by paying off the smaller balance debts first. This has proven to motivate people in their effort in getting out of debt. Attempt some of these options on your own before reaching out to any debt relief company or bankruptcy attorney.
At the end of the day we all know that staying out of debt isn’t easy, especially for those people struggling with their finances as is. However, for those who can’t help themselves, they have an arsenal at the ready to help them in their fight. They just need to know that sometimes things will get worse before they can get better. Take the best course and educate yourself about the options long before you find yourself in a mode of desperation.