Dealing with personal debts

Is insolvency beckoning at your doorstep? It’s high time you tackled this.

05:30 09 January 2014

Nobody wants to be in debt. If you can avoid it, the better! However, not everyone is fortunate in that goal. Just like the crack on the dam is the bringer of flood, small debt has the tendency of turning out to be very big debt. It is a situation that nobody fancies being in. People who have at one time or another been in debt will tell you that it is a catch 22 situation that touches every area of your life in the worst way.

 

If you are working, you have some saving grace albeit you will have to tighten the belt a bit. When the safety net of employment is taken away, then we have a situation that can escalate into a very bad one very fast. Below are some things you should know to stay solvent.

 

It is going to get worse before it gets better, or so the doctor says!

 

Doctors usually say that you have to get sick in order to appreciate staying healthy. You should take a breather and examine the situation. Ascertain the most crucial debts and take care of them. Other debts should be sorted immediately after.

 

Homeowners and Non-Homeowners

 

If you are a homeowner and have a mortgage going on, you cannot afford to miss a payment. If you are going to miss one anyhow, you should make arrangements with your lender so that you can get back on your feet.

 

Non-homeowners are mostly susceptible to accruing immense amount of debt attributed to misuse of credit cards. It is better to stay away from credit card debt if you are unemployed and looking for work.