Overwhelmed by Debt? Stop Ignoring Your Mail & Do This Instead
Are you feeling overwhelmed by a mountain of debt? If you have reached the point where you feel hopeless about your ability to ever pay it off, then read on to discover some vital action steps you can take to get back in control.
Stop ignoring your mail.
A common reaction to large amounts of consumer debt is denial. You see the collection letters arriving in your mailbox and you simply ignore them, hoping they will go away. Those debts will not go away. In fact, they will only increase and cause even more headaches in the future if you do not handle them now.
When you don’t pay a bill that you owe and it falls into collections, the original owner of the debt may sell your account to a debt collection agency. This agency purchases your past-due account, along with thousands of others, for pennies on the dollar. If they attempt to collect what you owe and you still refuse to pay, then they can take you to court. They will send you a summons to appear in court, which you will never see if you are not opening your mail. When you fail to appear in court, the debt collection agency gets a default judgment against you, the borrower, allowing them to garnish your wages or even freeze your bank account.
Get a handle on all of your debt.
You could get out a piece of paper and a pen, or open up a blank spreadsheet on your laptop, and make a complete list of your debts. List who you owe, the payoff balance, interest rates and the minimum monthly payments for each account. However, this could be a scary task to take on alone. That's why it makes more sense to schedule a free consultation with a DebtStoppers bankruptcy attorney who will do this for you for free.
Choose how you will pay off your debt in the most manageable way possible.
The most effective way to make steady progress towards paying off your debt is to trim your budget ruthlessly so that you can pay at least the minimum payments on each account each month. When you get one account paid off, apply that money towards the others.
What if it’s all just too much?
What if you have sat down and totaled all of your debts and when you were finished you almost fainted from shock? What happens if after you recovered and compared the amount that you owe to the amount of money you make, the number was just huge? You have done the math and concluded that the only way you could get to a zero balance would be if you could work full-time until age 112. Bankruptcy might be a viable option that would give you a fresh start and take some of the pressure off of living under the burden of overwhelming debt. Instead of allowing debt to ruin your quality of life, you can create a plan to get back on track financially.
Contact DebtStoppers today to schedule a free, personal debt analysis. Our experienced bankruptcy attorneys will answer your questions and help you determine if bankruptcy is the best option for you.