People typically do not feel comfortable discussing debt challenges, so they often do some searching online or make decisions based on anecdotal evidence of friends.
As such, there can be a lot of misinformation out there that, when followed, make a financial situation worse than it already may be. Instead, you might consider the following dos and don’ts of dealing with debt.
Tips for what to do
If you are have debt, you may want to:
- Start small. Financial issues can seem too big to handle at once, and even a small step out of debt is a step forward. One step to take is to make a budget if you don’t have one already.
- Get a clear picture of your financial situation. To make informed decisions, you must have information. Thus, you should know the details of all your debt sources, payment schedules and income.
- Talk to your creditors. In some cases, they are willing to negotiate a temporary pause or reduction in payments.
- Ask for help. You may not want to advertise your financial challenges, but contacting experienced professionals to help you manage your situation can be crucial.
Making these decisions can help you move forward on a path out of debt.
Tips for what not to do
There are also some missteps that can be wise to avoid as you pursue debt relief solutions.
- Don’t be too hard on yourself. Millions of people are in this situation for myriad reasons, and carrying debt does not necessarily indicate unwise spending.
- Don’t fall for scams that prey on individuals in debt. Visit the FTC website to learn more about scams and to file a complaint.
- Don’t panic. People seeking a quick fix might start closing accounts, taking from retirement accounts or paying off one debt while missing payments on others. However, making these decisions without thinking them through can ultimately make matters worse.
- Don’t stick your head in the sand. You may not want to deal with your debt; you may not want to think about the impact that it is taking on you. However, hiding from your financial challenges will not make them go away, so do not ignore them.
Understand that every person’s debt struggles are unique. These suggestions can help, but to address your specific challenges, you can call 814-806-2518 for a FREE CONSULTATION with an attorney at the Quinn Law Firm.