If you’ve had your heart set on getting out of debt, why not take the time necessary to put this article to rest by educating yourself about the kind of decisions you should make after you have had a default credit card debt.
1. If you decide to get out of debt, make certain you plan on finding a way to repay this debt properly. Before you do, however, you may want to think about some questions that you may want to ask yourself:
– Can you get a default credit card?
– Can you negotiate with the creditors to get repayment?
– What are your overall debt limit?
– Can you afford the interest rate after default?
2. If you find that you are in dire need of a financial emergency, consider putting your dreams in order. For example, a good way to make sure you want to rebuild your credit is to get a home loan with a lower rate. Again, a home loan with a lower rate may be the best option since you will have a lower interest rate at the end of the loan. You don’t want to leave your home with a big monthly payment, however!
3. Repayment and Refinance Insurance’If you have had a default credit card for a period of time, consider closing the card, applying for new cards and then using the money to pay off the current debt. Many people struggle so hard every month that they just toss the card back into trouble. Repaying $1,000 with the default card is a solution to this problem. If you can’t pay it off quickly, then accept the lower rate to get some of the money you have saved!
4. Try to clear up some of all overdue bills. Yes, you can remit some bill payments on your debit card, but make sure you pay on time or you’ll end up paying hundreds of dollars in fees. If you pay your bills on time, you’ll get great benefits from your card and the interest rates and fees won’t go down any time soon.
Avoiding Bankruptcy Even After Bankruptcy
Following an extremely traumatic event or divorce, many people in America face the realization that most of their lives are meant to end, and they want to avoid that. Lately, one such person has become a famous counselor in her own right, and her name is synonymous with helping people get back on their feet. I’m going to make an exception here, since I know that being famous can be very helpful.
Don’t let the title give you reason to be wary of professional counselors. One interesting case is Harvard Law Professor Ed Robinstein, who has written an extensive book on taking stock of a vulnerable group of people — the teenagers. In his exhaustive explanation of how financial crises end up hurting people more than we do, Ed takes a clear and understandable detour into contrasting how this happens to a rich topic that deserves a thorough examination without giving much weight to whatever the cause. Ed is a prolific author, and his analysis of a topic I cover in this article — most notably, housing issues — is not overly interested in comparing the books of one to the next.
So, after listening to many different options that have been revealed to the student counsellors I have covered here at Lawfare, I don’t recognize one that doesn’t have some expertise in this particular field. There is a book out right now called, Disaster Counseling: How and Why You Should Prioritize Your Expenses with Debt Consolidation Loans — or Do it Yourself.
Using a financial planner as a guide, then, is to start by looking at the costs and benefits of your debt consolidation loan — all to make sure that you can afford it. What cost has become unnecessary since you can’t afford to pay more than a little more each month of debt? What eliminated one dime in interest after another?
Okay, one thing I didn’t pick up by looking at the debt consolidation loan package for students is how helpful it is for their credit, financial problems, and ultimately, their futures. By picking up the debt consolidation loan separately — saving time doing the math again — you really can talk your way out of a nasty financial mess! Plus, all your money falls directly on to them from your interest payments. Don’t believe anyone’s talk — even if it’s a college or a government consulting firm!
Debt consolidation financing is a fantastic solution, provided it is used correctly — and correctly arranged to eliminate your debt from accumulating. But if you don’t prioritize the debt consolidation loan, you go wrong, and your entire financial career revolves to the bitter end of the earth.