Finding Help in Managing Debt
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Finding Help in Managing Debt
There are many reasons why people find themselves in financial difficulty. The key to resolving financial woes is understanding why the problems arose, making a plan to resolve the problems, and taking action to get back on track.
Things To Know
- Before you can resolve your debt issues, you need to deal with their causes or the problems will likely recur.
- Try talking with your creditors if you can’t make your payments.
Deal with the causes of your debt
In the past, you may have managed your debt well—until you lost your job or had a financial setback due to large medical or legal expenses, or investment losses. You may have incurred large debt due to poor spending habits, overuse of credit cards, poor budgeting, or even gambling. Before you can resolve your debt issues, you need to deal with their causes or the problems will likely recur. Some of these issues you can resolve on your own, while others will require professional help.
Time to get help?
If you have done all you could to reduce spending, made a budget, and consolidated your loans, it may be time to get help. If you still cannot make minimum payments on your loans, try speaking to your creditors. Explain your situation and how you intend to rectify it. Creditors may revise your loan terms or even suspend interest temporarily in order to give you time to repay your loan. Creditors would rather receive some payment than risk not getting any payments should you resort to bankruptcy.