Debt, repossession, and bankruptcy are three terms you would want to avoid in your life, if possible. However, for middle-class workers, it is unfortunately a reality they can hardly escape from. Life is simply becoming too expensive nowadays (read more). So expensive perhaps, that it ultimately makes you question what on earth you are trying to gain from living it. Hospital bills, public taxes, school tuition, grocery expenses, and all the other things we have to mandatorily spend on are amounting to sums that our budgets can hardly keep up with. Sometimes, things get so financially-draining that you even begin to wonder if there’s anything in life you did wrong to deserve such stress.
Don’t worry. We feel you. We’ve all had our financial woes; times when we can barely even make it to a payday alive.
Are we really working for money? Or is money working us? This is a question that is philosophical as much as it is existential. I’m sure that as you’re looking at those red envelopes and summons from all the credit cards and car bills you just can’t seem to untangle yourself from, you think to yourself:
Money, indeed, makes the world go round. Money, too, will make my life go crumbling down.
I know you think that it’s too late to resolve everything. I mean, reality is practically shoving the fact to your face. If you think of all the interests, back logs, balances, and debts you’re juggling, it would seem that there is no way out. It may even convince you that you’re at your wit’s end. Fret not, however, for in every hopeless situation, there will always be a silver lining . All you need to do is to find it.
Let me tell you how you can approach this problem pragmatically:
Prepare Yourself Emotionally
Breaking down, crying, or cursing your fate when you’ve hit rock bottom is natural. In fact, it’s a very human reaction. I’m sure somewhere inside, you question yourself. “Why me? Why now? Why can’t the universe conspire for once to make my life less miserable?” All too often, financial mismanagement is secondary or an after-effect of a very traumatic or tragic experience in life. The death of a loved one, the end of a marriage, and the loss of a job are all possible life events that can throw you off your normal groove.
Debts and taxes, credit cards and house bills can be juggled when you are emotionally stable and mentally sound. It’s something every normal person struggles with on a daily basis. But when life hits someone hard, all the juggling is thrown into a state of confusion and disarray. This is when lapses in payments start and the inability to cope surfaces. Before you know it, your financial stability is thrown off the window just like that.
If you want to turn the tables in your favour again, you have to let go of all that emotional baggage and start focusing on fixing whatever needs fixing. Let out your last cry, your last wail of frustration. After that, recompose yourself. It’s not the end of the world.
Actually, it may have ended and it’s now time to rebuild.
Avoid Aggravating the Situation
If you can’t fully maintain composure whenever a new red letter gets dropped into the mailbox or when the debt collector has called you for the 20th time, then just don’t make matters worse – please. You know that you’re already in a bad situation. Yelling at the mail man or cursing through the phone will not help in any way. It will only give rise to more problems.
Need to know more about this topic? Well, here are other major “don’ts” when you’re dealing with a debt problem:
What you should do in these painstaking situations is to remain calm and collected. If that’s not possible, then just stay quiet. Retaliating is childish and you certainly won’t get results from trying to threaten the collection agency. After all, it was you who didn’t come through with the deal. You borrowed money from credit card companies agreeing to their terms and conditions. You signed a repo contract without anyone forcing you when you first got your car. Collecting agencies simply do what they’re told to do. Acting rashly or aggressively will do more harm than good.
Seek Legal Counsel
I just said that collecting agencies work according to what both parties agree on. That means you and whoever you’re indebted to. You signed a contract; you were made aware of the rules and the consequences of failing to abide by the contract, so you should know that this was coming. However, state laws (read more) are not so punitive that they will force every last cent out of you even if it means lifelong hunger for you and your family. In fact, our laws protect us from such realities. For example, understanding vehicle repossession law can help you know your rights if you’re facing repossession issues while dealing with debt.
Chapter 7 and 13 Bankruptcy gives you a chance to take hold of your life again. I know that the word “bankruptcy” has a lot of negative connotations. But if you really learn it, like seriously discuss it with a Spokane bankruptcy attorney; you’ll see that it can bring the biggest change in your life. It might even save it.
Then again, it’s hard to trust something that has a rather infamous reputation. But let me leave you with this: Act on what you think is right and most beneficial but act with proper guidance. With that said, if you are planning to file for bankruptcy, seek legal counsel first. It makes all the difference.