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How to Get Out of Financial Trouble?

Written By: admin on May 19, 2009 One Comment

Maybe you made some bad choices in the past and you are now facing huge debt, you have no safety net and you feel completely helpless when you think about your financial future. Don’t waste your time and take your future into your own hands. The most important thing is to be serious with your goals and build your own future. Forget the past and mistakes you used to make. Begin anew and take your future into your own hands.
What shall you do?

1. Analyze your financial situation and make a sustainable financial plan
As always, the first thing you have to do is to make a financial plan. You know your income and your expenses. The loan repayment is your most important expense and you must fully grasp the gravity of your financial problems. Make a detailed specification of your debts, including to whom you owe specific debt, interest rates you pay on each specific debt, when is the debt due (or when it was due), amount owed and all the other specifics that can help you address your problems. Only when you understand you financial situtation you can start building your way to debt free future. If you are in serious debt it is important to note that in your financial plan you have to be realistic and as a must you have incorporate in your financial plan significant, but realistic savings that have to be sustainable. Check out all other articles on Become Thrifty and get some ideas.
2. Talk to your debtors and renegotiate
If you are overdue with your payments or you know that you will be unable to service your debt in the near future, the only way you can handle it is to talk to your debtors. Be an adult and don’t avoid talking to your bank or credit card company, the best policy is to be completely honest, present your situation and show that you are aware of your problems and that you are willing to put your financial situation under control. There is always a way out but you will need help from many people if you want to succeed. Look into options regarding the restructuring of your debt, maybe it is possible to refinance your debt, renegotiate terms, or see if maybe you can work with some family member that can provide you with a substitute loan or you can make some other adjustments that will enable you to make your payments in time.
3. Look for help if you need it and be careful
Maybe you don’t understand financial terms and you feel you need help with your financial situation. If you feel you need help, if you are lucky enough to have a family member or a friend that is money savvy ask them for help, or if you don’t than hire a professional that can help you with your options. Don’t forget that on Internet you can find many useful information, but there are also many false information. Just be careful and don’t believe anyone that will tell you that all financial troubles will be over in a second! Everything is hard work and it applies to getting out of debt. There are many dishonest people that will try to scam you into believing that there are easy solutions, whether they apply to getting rich quick or getting out of debt over night, don’t be naive and trust only yourself!
4. Nothing is sacred and your financial stability is more important than anything else
Don’t make yourself a slave in the golden cage. Maybe you spent thousands of dollars on expensive clothes, cars or some other luxuries. Sell everything you can if it will help you get out of debt. Getting out of financial trouble is your goal and number one priority. Don’t sweat what will neighbors or friends think of you if you sell your luxurious house and move into more modest place, or what will they think if you buy a used cheap car. Being honest to yourself is the only way out and you must be prepared to make some sacrifices if you want to help yourself.

One Response to “How to Get Out of Financial Trouble?”

  1. Aaron Wakling says on: 19 May 2009 at 9:16 am

    Great Blog post. I am going to bookmark and read more often. I love the Blog template

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