I have a lot of debt, well I think it’s a lot anyways. I think it’s somewhere along the lines of 15K in unsecured debt. I am not late on anything and haven’t been in a very long time. I have a bankruptcy that was disharged 12/2002. The amount of debt is kind of freaking me out and I get worried that I wont be able to pay all of my bills if something suddenly came up. I would like to know more about debt counseling and/or consolidation. I really don’t know what would help me and I don’t want to damage my credit as it took me a long time to get it to where it’s at now because of the bankruptcy. Any help or advice would be greatly appreciated.
Thanks for writing me for help.
I see you’ve reached that magic tipping point where the level of debt creates an uneasy feeling and concern. Everyone has a different number where those emotional feelings set in.
Tackling getting out of debt is fundamentally simple and that’s easy to say, but hard to live through. It’s just applying more than the minimum due on a consistent basis and in an optimal way to maximize your debt repayment dollars.
But for most the struggle becomes making cuts in current spending or increasing income to free up those needed debt repayment dollars to apply.
Your “freaking out” feeling will be a detriment in getting out of your debt. It will lead you to an all or nothing proposition of applying all your extra dollars towards debt reduction. That’s not the right approach.
The better approach is to both save and dig yourself out of debt at the same time. This way you start to build an emergency fund, really just a boring old saving account, in which you accumulate cash to use in an unexpected demand occurs.
By having this cash on hand you can actually use that instead of some unanticipated expense landing back on your cards and eroding any debt reduction progress you’ve made.
I don’t think it sounds like it’s time to panic, but more that it is time for us to implement a plan to solve this.
Any idea what you credit score currently is?
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