Getting Rid of Outstanding Debt is a Priority

There are millions of people who have debt, but some have staggering debt.  Sad but true. Paying down your debt, continuing to do so until you pay it off and vowing to never allowing yourself to get buried in that hole again, is your goal.  Make it your priority…. It’s imperative.

You will have to cut your expenses to the bare bones.  So start chopping…there’s no other way.  Gather your debt statements.  Call the creditors and tell them you are serious about paying it off, letting them know that you are putting serious effort into getting down to a zero balance.

If the debt is your home, (if you’ve missed some payments) – that will have to be paid first, or you’ll find yourself on the street. Call the landlord or the mortgage lender and let them know you want to catch up with back payments owed, and then continue paying current payments.  Unpaid mortgages means foreclosure.  The bank repossesses the property, and you lose all you’ve put into it.  And renters can come home to find that the locks have been changed.

If the debt is your car, it may be your transportation to work. So, if it’s repossessed, whatever you’ve paid into is is now gone along with the car.  The only way to get it back is to pay all the back payments owed as well as the repossession costs (towing, storing etc). You may no longer be able to get to work if you don’t have your car, so losing your income is added to the mix.

If it’s credit card debt, stop using the credit card(s) immediately.  it means you’ve been overspending.,,,buying what you can’t afford, and not paying for what you do buy when the bill comes due, thus allowing the balance to accumulate along with added fees.  In checking your credit card statement(s), you will notice that a good deal of the balance is a high interest balance that has been included – which is money you now have to pay, but have nothing in your hand to show for it.  Also, if you’ve paid late, that tacks on an additional fee for each occurrence, …completely wasted money.  Stop using, but don’t cancel your cards.  Cancelling will decrease your already plummeting Credit Score.  Hide the card(s).  Or better yet, shred them.

Whatever the cause of the debt, paying it off, repairing your Credit Score, and living within your means is key.  You can turn your Financial Health around.  Learn from your mistakes, and don’t fall into the debt hole ever again.  Once out of debt, you can begin to add to your various savings accounts, by using the money you’re now not wasting on fees and old debt.  A gift you give yourself.