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Debt Management and Credit Scores Cleaning Up Past Debt Management Mistakes
Everybody makes mistakes. Mistakes may be one of the few things that every human being on the planet has in common with every other human being on the planet. No matter how well educated we are or how street smart we are, we are all going to make mistakes in our lives. It's a given.
Mistakes in debt management are one of the most common of all the possibilities.
Getting in over your head financially speaking has become so commonplace that an entire industry has emerged to deal with the problem. It really isn't hard to see how and why this happens.
The credit card companies make getting into deep debt easy. Anybody who has a social security number can get a credit card. You fill out an application, of course, but the information on the credit card is not verified. Employment is not verified and other debts are not considered when a credit card is issued. Even dogs (the real kind that have four legs) have been issued credit cards.
The spending limit that is set on a credit card can be anywhere from a few hundred dollars to many thousands of dollars.
Then we are all bombarded with advertisements for goods and services that are very attractive. Our friends have stuff, and our neighbors have stuff, and we want the same stuff. With credit card in hand, we set out to get the stuff, and suddenly there is a mountain of debt.
There are about three options: debt consolidation loan, home equity loan, or bankruptcy. Most people will choose either a debt consolidation loan or a home equity loan in an attempt to clean up past debt management mistakes.
Either works, but unless lessons have been learned well enough that they will not be repeated, the industry can depend on repeat business.
See Also:
Debt Management - The Controls
| Free Programs for Debt Management Debt Management Experts
People who work as debt management experts go to school for that sort of thing. Many spend four years or more getting college degrees that identify them as experts in the money and debt management fields. And they are experts, there's no doubt about it.
The best of the debt management experts and debt management teachers, however, are those who have learned to manage their personal finances and their personal debts, and then passed that knowledge along to their children.
Those who actually do it are the experts, and they are the ones that we need to learn from to avoid having to visit with a well-educated debt management expert because we have gotten ourselves into financial hot water.
As I look around at expert debt managers (those who successfully manage their own finances) I find that they have many things in common. They don't all do things exactly the same way, of course, but the structure in which they manage their finances is basically the same.
1. They save first. Those people who know how to save very rarely get into financial trouble. Sure, they can. Life can throw some pretty hard curve balls....the loss of a job or a major illness. But unless their financial trouble is caused by an outside force they will not get themselves in debt up to their eyeballs.
2. They live within their means. They do not base their spending upon what their friends have. The neighbors might buy a new car, but that will have no bearing upon whether they do or not.
3. They all have budgets. Not only do they have budgets, but they live within the constraints of that budget. They do not make impulse buys. If asked, they could tell you how much is spent each month on food, shelter, clothing, utilities, and transportation. |
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Debt Management: Debt, Bankruptcy, Credit Cards, Loan Consolidation ...
| Free Programs for Debt Management Debt Management through Bankruptcy
Bankruptcy is a last resort! It should never even be considered as an option until all other options of debt relief have been completely exhausted -- at least not for us ordinary mortals.
If you do find yourself in the position of having to declare bankruptcy, you will be in some pretty good company. Donald Trump, Burt Reynolds, Walt Disney, Wayne Newton, George Jones, MC Hammer, and Johnny Unitas are just a few of the very famous people who have had to declare bankruptcy and then been able to get on with their lives.
It isn't the end of the world. You will survive!
Bankruptcy laws have changed. There was a time when filing bankruptcy erased all debts but that really is no longer the case. You need a lawyer to guide you through the bankruptcy process. Some of your assets are protected even today, and without a good lawyer in your corner, you can be fooled into thinking that they are not protected.
Don't take the chance. If you must file for bankruptcy, get a good bankruptcy lawyer in your corner so that you come out on the other side in as good shape as possible.
Don't listen to hearsay and rumors. You need facts...good concrete information. A lawyer who specializes in bankruptcy can get you the very best settlements that are possible. The harassing phone calls will stop immediately.
Yes, you will lose most of your assets through bankruptcy, but you will be getting a clean slate. Contrary to popular opinion, it is sometimes easier to get loans and credit cards after bankruptcy than it was prior to the bankruptcy.
You will have to start over, so to speak, after bankruptcy, but that doesn't necessarily mean starting from zero. You can retain many of your assets if you have the right legal counsel. |
Related Topics: American Version of Debt Management,
Debt Management-The Controls, Debt Management and Home Equity Loans
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