Recommendations from 4 Pillars on Keeping Your Debt under Control
No one plans to get into debt, but it can mount up stealthily, from a small and manageable monthly bill to a sizeable concern that cannot be paid back in a month or two. Companies, such as 4 Pillars Debt Consolidation & Credit Rebuilding for Victoria, BC, work to help customers in such a position pull their debt down to manageable levels, or even to nothing. Here are some ways that you can help to keep your debt under control:
Assess if you really need credit.
While accepting every offer of credit can be very tempting, especially when money is tight and the family's needs keep growing, this is never a good idea. While accepting credit or increasing existing limits can help with purchases in the short term, before long, interest will begin to mount and making repayments that significantly reduce the bulk of the loan becomes harder and harder to achieve.
Pick what you can repay, not what you want to borrow.
Work out your maximum monthly outgoings to arrive at an amount that you will need to secure every month. Anything over this amount is what you should have available to make repayments on loans and other credit issues. Choose your credit product based on an amount that you will comfortably be able to repay until the credit is fully repaid, rather than picking the amount that you would like to borrow.
Anticipate the worst.
Never assume that your situation will not worsen. Always allow for emergencies and try to set aside a small sum for unforeseen circumstances that is not to be touched until it is absolutely necessary. For this reason, try not to use up all your extra cash as debt repayment. If you do, you may find yourself in the unpalatable position of needing to borrow more money than you can comfortably repay, sending yourself into an ever-increasing spiral of debt from which it will be almost impossible to escape.
Consider restructuring your debts.
If you do find yourself in this position—owing more than you can easily repay—there is still hope. Consider debt restructuring. Restructuring your debts involves structuring a deal with your creditors to pay back less than you owe typically over 3 to 5 years at 0% interest or as a one time lump sum.
This may sound too good to be true to some but that is not the case. Because your debt is a commodity on the market (and because you may have stopped paying or are missing payments) you are a high-risk investment. Creditors no longer care that you originally owed 30K. They aren’t aiming to get all that back – they just want to salvage and get some money from you. How much your debt can be reduced depends on various factors. It is very important that you have a Debt Consultant who only works on behalf of the debtor represent you through this process.
Reading up on 4 Pillars reviews and other industry literature will help you to make the right choice and become debt-free in the shortest possible time.