By: Mark Serrano, Account Executive at Debt Recoveries Australia
A quote from Dave Ramsey says “There are no shortcuts when it comes to getting out of debt”. In life, we sometimes strive for material assets and spend way over our income, getting into all sorts of trouble, but there is life after debt.
To find peace we need to find a remedy. The same goes with our debt. This is a part of life that we need to find a remedy for, before it brings us down to our knees.
Steps to Get Out of Debt:
1. Know your debt. If you learn how to face your debt, you would be aware of its situation. Don’t be afraid to talk to your creditor or debt collector. Debt is a liability but it can also be a milestone. You can look upon it as a turning point in your finances and use it as a sign to begin afresh with a new financial outlook. Exploring a positive outcome with your debt collector allows you to get on top of your finances, instead of ignoring them. Don’t run or hide, it may add to your stress because it will not fix the problem. Ring your creditor or debt collection agency and talk about the debt.
2. Know your priorities. Debt is all about self-management and self-preservation. We all know that our debt affects our credit score. Knowing your priorities means ‘cutting down’ the wants and saving funds for the needs. Figure out what you really need instead of just what you want.
3. Work with a debt expert. Firstly, if you can’t afford a financial advisor, try Financial Counselling Australia or call them on 1800 007 007. If you want you can explore other debt experts who specialise in debt relief. They act on your behalf and will help you consolidate your debts and also negotiate with your creditors on your behalf.
4. Make a deal. Ring your creditor or debt collector and make them an offer. You will be surprised how approachable they are. Debt collectors are on your side. They want to make a deal just as much as you do, so talk to them and make them a reasonable offer to satisfy your debt. Alternatively, start making instalments so you can at least start chipping away.
5. Share your milestone. Tell friends how your life changed by getting on top of your debts. Let them know how it worked for you and live your life proud knowing you are not hiding, stressing and worrying about your debt. When you share your positive experience, it will help the next person and it will also help to reinforce your new positive financial plan.
These are my 5 steps for living a life after debt. That is guaranteed to give you a head start to get back control of your life. Good luck!
ADC Legal Litigation Lawyers is a legal practice specialising in commercial advice and litigation, debt recovery and insurance claims recovery disputes. For more information, email us at firstname.lastname@example.org or call 1300 799 820. Talk to us about your litigation or dispute concerns via Skype at adclega