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Drowning In Debt?
Filed under DebtNov 19
Are You Drowning In Debt?
Find A Lifeline If You Are Drowning In Debt!
Let me make it clear. This website, Extreme Frugality, is not just for people who are already on their way to living a frugal life. It is also for people with critical financial problems.
As my Grandpa always said, “It is easier to stay out of trouble in the first place. But if you have not done that, there is always a way out!” That advice has carried me through a lot of complicated and troubling times.
If you cannot pull yourself out of a personal debt crisis, there is help. What I want to do here is to point you towards real help, and not fake help – even scams – that will just get you into more financial trouble!
You know what the problem is. If you have to spend hundreds of dollars every month to service past debt, especially unsecured debt that covers depreciating items, you cannot get ahead enough to ever get the debt paid off – much less start working towards financial stability!
Where To Get Help With A Personal Debt Crisis
Let Uncle Sam help you! If you cannot help yourself, start with information from the resources provided by your own government. In the US, you can view this page - US Government Credit Counseling. In my opinion, federal government sites like this make good use of our tax dollars!
What’s on that page? Here is a sample of the resources you may find.
- Find the National Foundation For Credit Counseling (NFCC). Member agencies provide credit services for affordable (sometimes free) prices. These member agencies have agreed to comply with state and federal laws controlling their services.
- View a list of US Department of Justice Approved Credit Counseling agencies. You can find a local agency here.
- Visit the Bad Credit Hotel at http://www.controlyourcredit.gov/ – This website is geared towards educating consumers about ways to control your credit. It is an interesting, and sort of spooky, interactive website that has the look and feel of an online game. Even though it seems a bit silly, it actually provides a lot of helpful information about handling debt problems in an easy to understand and helpful way!
Avoid Get Our Of Debt Scams
Have you been called by a telemarketer who offers to get you out of debt for a hefty, up front free? Not only do these services prey upon people in trouble, they also are probably illegal. Be very wary of any organization that :
- wants money up front (this is actually illegal now)
- promises to settle debt for pennies on the dollar
- or makes any promises before they even review your financial situation.
Note that most companies that make unsolicited phone calls are just fishing for information. They do not really know anything about you except what you tell them. I would not tell anybody anything who makes an unsolicited phone call, and asks for personal information about me!
Again, I urge you to go through the government link above to find reputable debt management and credit counseling organizations. Look for agencies that participate in the NFCC.
Do It Yourself Debt Help
Many people would prefer to do their own work in order to handle a debt crisis. If your problems are still small to moderate, you may be able to accomplish this. This way you will not have to pay more money for help, give your personal information to an outside company or organization, and learn a lot more about credit and debt.
Here are some steps you can take to fix the problem yourself.
- Learn to budget. A good way to get started is to print out last month’s bank and credit card statements. Figure out what bills are critical (i.e. your mortgage, light bill, groceries, etc.), and where you are spending money frivolously.
- Contact creditors as soon as you anticipate trouble. It is much easier to work out modified payment plans before your accounts are past due or over the limit. Let them know why you do not think you can make prompt payments, and you may find they already have plans in place for this situation.
- Learn how to deal with debt collectors. Consumers have a lot more legal protection than they did a few years ago. Debt collection agencies can only call during certain hours, may not call you at work if you tell them your employer will not approve, and must even stop calling you at all if you send in a written request. You do not have to be harassed by collectors!
- Dealing with secured debt like home and auto loans as quickly as possible. It is one thing to get behind on unsecured debt, but if you are worried about your car or home loan, you could risk losing your vehicle or house! Be sure to contact your financial institutions as quickly as possible – best when you are still current – to explain why you are having problems with bills. If you and your mortgage company cannot come to an agreement, contact a housing counseling agency as soon as possible.
Do Not Delay!
Do you notice a common thread? Delay only makes things work. The sooner you can address your debt crisis, the easier it is to keep yourself from drowning!
4 Responses to “Drowning In Debt?”
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Debbie said on November 19th, 2011 at 5:09 pm
Thanks. I think a lot of people are drowning in debt – and miserable because of it. I am glad that this website is not just for people that already have adopted frugal ways from birth – but also to help people get out of trouble!
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[...] Sometimes, you can find ways to pull yourself out of a debt crisis by yourselves. But if you are drowning in debt, you may need [...]
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[...] manage that credit wisely, you can help yourself. But when you cannot manage that credit, and are drowning in debt every month, it will ruin your financial [...]
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[...] people are here because they are drowning in debt. They do not see an increase in income in the near future, so they know they must cut expenses so [...]
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