subject: Financial Troubles: Solving The Problems [print this page] When trying to fix your own finances, there is a lot of digging into your own spending habits and evaluating how you have budgeted your income thus far. Examine your monthly costs, figure out how much goes where, and make some decisions as to where you can cut back.
The next step will be trying to find out your options for additional funds. Getting money to help pay down or pay off creditors will alleviate your monthly budget demands. The more you can do on your own before major credit damage is done, the easier it will be to repair your finances.
After evaluating your financial situation, you will have a better idea as to what kinds of problems you are looking at and then you can proceed to the next step. How to go about solving the problems efficiently?
What are your options?
*Do you have a savings account to use?
*Do you have family to help?
*Is an auto title loan available to you?
*Do you have a second car you could sell?
*Is your credit score high enough to get a bank loan?
*Can you get a second mortgage?
*Would debt consolidation programs be helpful?
*Would credit counseling services help?
*Debt settlement programs?
*Bankruptcy?
If you are not able to solve the problem on your own, then a savings account is not an option you have. Asking family for money can get tricky, but some people do have that source as an option. Be careful not to ruin relationships over borrowed money, you are better off paying a business for their services and keep your family intact. Would your income support taking out a car title loan to do your own debt consolidation? You would not want to sell a car that you or a family member uses to bring home income, unless you have a back up transportation plan.
Get copies of your credit reports from all three credit bureaus and compare. Know all that there is to know about your debt especially if you will be going to a outside third party for assistance. If you have made the decision to go outside and get help, start the research over again to find out what program is best for you. Get the facts on these programs before you start calling the companies.
*Debt Consolidation
*Debt Counseling
*Debt Settlement
*Bankruptcy
Why is it so important to know the facts before you begin calling companies? Each company will tell you that their program is best for your situation, they are the only ones to be trusted and that they will save you the most money. Getting help with your finances is a booming business. There have been many companies investigated and prosecuted for taking advantage of people in desperate financial situations.
There are non-profit and for-profit credit counseling services. Some of these services are sponsored or run by creditors who will not have your best interest foremost in their plan of action. Find out this information before you decide.
Debt consolidation programs are a third party paying your bills. They may contact your creditors asking lower interest or lower payments, but you can do that on your own at no cost. Having this third party paying your bills for you will show up as a negative report on your credit.
Debt settlement companies will hurt your credit more before you can start to rebuild it. It will take years and will cost you for each creditor they work with. Any company demanding up front funds to look at your finances are not being honest with you.
Bankruptcy is a final option. There are two bankruptcy options and you will need a lawyer to settle this. Lawyers will demand a retainer fee for their services. Many people cannot afford this fee or go this route without learning about the long term ramifications of filing Chapter 7 or 13 Bankruptcies.
by: Malinda Starner
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