Coping with debt can cause a multitude of problems. Health problems arise as stress levels go up because of debt. Marriage problems arise because of too much debt and uncontrolled spending. Emotional problems arise as depression sets in because of the overload of debts. This is all magnified by the fact that the phone constantly rings from debt collectors. To ignore the problem seems to magnify it, but you are so much in debt that you feel numb and motionless as the problem appears to grow, while you are stuck in an emotionally frozen state.
There are things that you can do to gain control of your situation. You may not be able to pay back everything, but you can begin to put a dent in the debt with discipline. The first step is self-help by creating a realistic budget. Next, you may also consider finding a credit counselor like Dr Credit to help you make decisions or explore reputable debt settlement organizations. Third, a debt consolidation loan may be a viable option. Lastly, consider if bankruptcy is an option. As you explore these steps, you should consider what you want your future to look like and do all you can to eliminate your debt.
There are several things that you can do to help yourself understand your debt. The first thing you should do is develop a budget. There are plenty of online tools available to help you through this process. Next, contact your creditors. Instead of ignoring their calls, give them a call and explain your situation. You’ll be surprised that some are actually willing to work with you on your terms. You should also protect yourself from debt collectors by understanding your rights. By
federal law debt collectors aren’t allowed to contact you before 8 a.m., after 9 p.m., or while you’re at work.
They also can’t harass you or lie to you. You can even give them a written request to stop further contact, and they must honor it. As for secured loans, such as mortgages and automobile loans, there are usually agreements within the loan documents as to how the lender deals with the property that is secured by the loan. Auto lenders may repossess your car any time you’re in default. Mortgage lenders may foreclose your home if you fall behind. It is important that you contact your lender in either of these situations if you fall behind to avoid repossession or foreclosure.