It’s no secret that many consumers are struggling with paying off all of their debts – and the increased amount of Dallas bankruptcy filings support these findings. It also comes as no surprise that there are people out there who are absolutely drowning in overdue bills and delinquent payments.
Thanks to the sheer magnitude of the credit crunch, many families are feeling the financial squeeze as they attempt to stretch their shrinking budgets in order to meet their skyrocketing debts. For those caught up in the debt cycle, it can seem as though there’s no accessible solution.
If this scenario sounds all too familiar, then chin up: there are handy tricks and tips that you can use in order to chip away your debts without tapping into your life savings.
Before you can take that first step towards financial freedom, however, you’ll need to take an honest assessment of your budget. Sure, you know what you need to spend in order to pay off the monthly mortgage and utility bills; but what about the expenses that you’re not tracking?
Yes, we’re talking about those little luxuries that can quickly add up within the course of a month: $2-a-day coffee, $15 manicures and lunches out with your coworkers. Those purchases may seem innocuous at the time, but just look at the math: that $2-a-day coffee habit adds up to over $40 a month! If you’re really serious about chipping away at your debt, it’s time to become more honest with what you can and cannot afford.
If sky-high interest rates on your credit cards are partly to blame for your troubles, try transferring the balance to a card with a lower interest rate. You’ll typically encounter an introductory rate period, so make sure you know what the interest rate will be once the period’s over: you don’t want to get slammed with a rate that’s even higher than your previous card. Of course, if you’re planning to declare bankruptcy, don’t go overboard with the credit card spending – Dallas bankruptcy courts may regard it as fraud.
Above all, don’t be afraid to pick up that phone and talk to your lenders. If you have an honest discussion with your lenders, they may often renegotiate your debts and interest rates to help you out. If the lenders aren’t budging, don’t be afraid to mention the word bankruptcy. Some lenders will work with you so they receive some type of payment rather than the debt being discharged.
Credit counseling is another great resource for those consumers who are really feeling the pinch of the credit crunch – think overdue credit card bills, delinquent mortgage payments and sky-high interest rates. No matter what option you pick to pay off your debts – credit counseling, debt settlement or bankruptcy – make sure that you take a credit counseling class to learn better financial habits.