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Settle Debts Now to Improve Your Lifestyle
The journey is supposed to be as enjoyable as the destination. If you are drowning in monthly payments, settle debts now and enjoy the trip more.
The Tragedy of Overwhelming Debt
When a hard-working consumer finds himself in inordinate debt, the toll can be tragic. Specifically, he now finds himself spending all of his income just to keep afloat, having no extra money for leisure or luxury. This is not how life is supposed to be. Lack of leisure activity, coupled with the worry of too much debt can create depression, anxiety, and a full range of related physical ailments. If this sounds like you, it is time to make some significant changes in your financial picture and to settle debts now in order to improve your lifestyle.
The first step is to analyze your income versus your debt. If you are already in the situation of late or missed payments on credit card or revolving debt, or your debt is preventing enjoyment of life, you need to get started on a plan. If debt settlement is the option you have chosen, and you are already late with payments, you need to wait until you are 60-90 days late. Until this time, no creditor is willing to begin
debt negotiations for debt settlement. During this period, you will have to submit to phone calls and letters, but the end result will probably be worth it.
Do not tell your creditors that you will be able to pay
them soon. This only encourages continued contact from them. You need to paint
a picture of overwhelming debt which you cannot see any way to pay. Your
creditors are interested in getting something, even if it much less than the
amount you truly owe.
If you are not assertive or you do not have the time it takes to engage in consistent negotiation, employ the services of an attorney or debt settlement company to complete the negotiations for you. They will charge fees, of course, but if they get you a great reduction in total loan amount, the fees will be worth it.
If you are 120 days or more in arrears, chances are your creditors have turned your debt over to a collection agency or company. Do not talk with them on the telephone. Do some research and learn your rights as well as the tactics you can use to negotiate much reduced debt amounts.
After The Settlement
Once the debt negotiations are complete and you have settled your debts, breathe deeply and enjoy your new freedom. If you have secured some type of debt consolidation loan to pay the vastly reduced former debt, be happy with the lower monthly payment. Now you have money each month to begin improving your lifestyle. Set up a regular savings plan, so that you never get into the debt situation again. This will provide the feeling of security that you need to be worry-free in times of emergency expenses. A good rule of thumb is to accumulate enough liquid assets to live for a 4 month period. Once you have achieved this, you will really sleep well at night.
Use some of your excess money each month to do those things you truly enjoy. Buy a new piece of furniture or put away enough to take that vacation you have always dreamed of. Make improvements to your home, or eat out once a week. Everyone has his/her list of things that make life pleasurable. The ability to pursue these things is enjoying the journey.