Life is tough, and it's tougher when circumstances attack. Unemployment, unexpected medical bills, student loan repayments, or accidents can happen at any time, and can cause you to fall behind on your financial obligations. If something like this happens to you, you'll undoubtedly want to repair your finances before you lose your home or other valuable property. These are the first six things you should do:
1. Take a deep look into the problem. What is the true cause of your debt? What are the true factors that are causing your inability to pay? If it's unemployment or something similar, you may have no extra options. However, if your problems are due to student loans, you may be able to get some financial aid, for example. If your debt is caused by overspending, there might be something you can do about that too.
2. Have a conversation with your creditor. Your creditor never wants to take your property; it's worth more to you than it will ever be worth to them. Your creditor wants you to repay as much of your loan as possible. If you come clean with your troubles and the reasons behind them, they may be able to help you with bankruptcy alternatives.
3. Pay high interest loans first. Many people, in addition to being behind on mortgage payments are also behind on credit card payments. You should do your best to pay off high interest and overdue balances first. This not only gets you free from the highest interest loans, it gives you and your creditors confidence that you are willing, able, and ready to pay back your loans.
4. Know your rights and your options. If you're in debt, you have many rights that you may not know about. There is a statue of limitations on debts in many states, and you have protection from creditors unduly harassing you. Check out the FTC's website for more information, and make sure to read the Fair Debt Collection Act.
5. Talk to a debt counselor and then do your research. Many states offer free debt counselors or debt counseling services. They will help you schedule a payment plan and get your current finances under control. Begin to research several companies who offer debt resettlement products- and check out several. You wouldn't buy a sandwhich without considering several menu items, don't make huge financial decisions without doing the same.
6. Beware of foreclosure scams. They are everywhere, and they are looking for anybody willing to fall for their scheme, particularly people who feel panicked. By all means, do not transfer your property into anybody else's name. Once they have your signature, you've lost your house. Don't fall for it.
Remember, all is not lost. Whatever happens, you'll be free and clear in a few years. - 31377
1. Take a deep look into the problem. What is the true cause of your debt? What are the true factors that are causing your inability to pay? If it's unemployment or something similar, you may have no extra options. However, if your problems are due to student loans, you may be able to get some financial aid, for example. If your debt is caused by overspending, there might be something you can do about that too.
2. Have a conversation with your creditor. Your creditor never wants to take your property; it's worth more to you than it will ever be worth to them. Your creditor wants you to repay as much of your loan as possible. If you come clean with your troubles and the reasons behind them, they may be able to help you with bankruptcy alternatives.
3. Pay high interest loans first. Many people, in addition to being behind on mortgage payments are also behind on credit card payments. You should do your best to pay off high interest and overdue balances first. This not only gets you free from the highest interest loans, it gives you and your creditors confidence that you are willing, able, and ready to pay back your loans.
4. Know your rights and your options. If you're in debt, you have many rights that you may not know about. There is a statue of limitations on debts in many states, and you have protection from creditors unduly harassing you. Check out the FTC's website for more information, and make sure to read the Fair Debt Collection Act.
5. Talk to a debt counselor and then do your research. Many states offer free debt counselors or debt counseling services. They will help you schedule a payment plan and get your current finances under control. Begin to research several companies who offer debt resettlement products- and check out several. You wouldn't buy a sandwhich without considering several menu items, don't make huge financial decisions without doing the same.
6. Beware of foreclosure scams. They are everywhere, and they are looking for anybody willing to fall for their scheme, particularly people who feel panicked. By all means, do not transfer your property into anybody else's name. Once they have your signature, you've lost your house. Don't fall for it.
Remember, all is not lost. Whatever happens, you'll be free and clear in a few years. - 31377
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