subject: Drowning in debt? 3 things Not to Do [print this page] The difference between a normal amount of debt and an unhealthy amount is often difficult to tell. Many folks find that what they thought was a normal amount of debt suddenly becomes unbearable. I have three things that you should watch out for when your debt is starting to be too much.First, DON'T simply make the minimum credit card payment. If all you do is pay the minimum, and keep buying things with your credit card, your balance will continue to increase. How so? Rather than get you out of debt, paying only the minimum traps you into debt because those payments never dent the actual balance. Aside from increasing your overall balance, the amount of your minimum payments will increase too. Soon enough, you won't be able to pay the minimum.Second, DON'T rely on your friends and family to get you out of debt. It's not a secret: when you are in debt, if you ask your loved ones for help, they most likely will give it. Nobody wants to watch a loved one struggle, and if they feel like they can help you, they will try. But, the generosity of others often comes with a very high price. You aren't just putting the most valuable relationships you have in jeopardy, but you are hiding from your own trouble. Taking advantage of other people will make you feel more secure about your financial situation than you should be.Third, DON'T simply pay a debt settlement firm because of their flashy promises. Unlike bankruptcy, which has almost 500 years of legal history, debt settlement is relatively new and has an uncertain future. Often it requires some sort of expensive upfront fee and does not guarantee you the results that they advertise. Additionally, debt settlement firms are unable to prevent your creditors from harassing you, suing you, or garnishing your wages.Sometimes you might feel like you have no other options! But in reality, you do. Compared to the risks and uncertainty of paying the minimum, relying on others, and debt settlement firms, a Chapter 7 or Chapter 13 bankruptcy might be a better choice.A bankruptcy attorney might be the perfect person to get you protection from foreclosure and credit card debt help. The thing is, for those who qualify, a Chapter 7 bankruptcy will not simply renegotiate debts, but eliminate them. A bankruptcy lawyer can legally protect you from your creditors, stopping all the calls, and putting an end to your payments until you get back on your feet.Now, if you think you have been doing any of the DON'Ts you should probably do some more research on other possible choices.
Drowning in debt? 3 things Not to Do
By: James Brown
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