Do-It-Yourself Debt Bailout Programs
So let’s talk about those of us who spend roughly $1.10 for every
$1.00 earned. Yes, this statistic applies to the average American! How is that
even possible? It is very possible, look at our Banking and Monetary system and
as a prime example of how to balance, more outflow that inflow. Most Americans
just do it on a smaller level-
Ok, so know that we have reviewed the obvious problems (again), what
is there to do? It is not bad to have debt as long as you have a system for managing
it. In fact, much like most world economies, this country was built (and still
survives) on debt. The challenge to most people is what happens after your past
the stage of successfully managing your debt? In other words, when a job loss, disability,
divorce or some other life changing issue gets in the way of you making timely
payments on your debt, how do you handle it?
Not surprisingly, most of us operate on the same principle. When hard times
hit, we take care of the absolute essentials and the rest will work itself out
in the order of importance. When I first experienced a challenge as a Real
Estate Investor, I had to make a similar choice. After home base was secured,
then I could move towards addressing other debt. With almost every person that
we have talked to over the years, the consensus is almost always the same.
So what are we suggesting? Ignore your debt until it is comfortable to pay
it? Put your creditors on the back burner at their expenses? Push off you
financial problems on the credit card and finance companies? Not! We are
simply suggesting that there has to be a reasonable approach to solving
(managing) this issue under control. In order to do that, knowledge and a plan
are critical.
Surprisingly to must people, your creditor actually want to work with you
when you run into trouble. They do not want you to default on your credit
cards, automobile, house payments, student loans, etc. After the repeated phone
calls and threatening letters, there is a solution period. This may seem
counter-intuitive, but the longer you let the debt default, the better
negotiations that can be had! HOWEVER, before you get to that point, there is
action that can and should be taken.
The key to debt negotiations is understanding the rules of the game. Every
lender has guideline that they can negotiate by and you simply have to be aware
of them. In our seminars and webinars, we help people to understand the actual advantage
that they possess when dealing with creditors. These rules apply to all;
not just those with more money or a higher education. In fact, dealing with a
creditor to negotiate down consumer debt is easier that you think...
In the next entry, we will discuss some easy and effective techniques for working with creditors and finance companies to reduce car payments and credit card balances
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