It’s an understatement to say that big banks give big loans to people who will never be able to repay the debt. These predatory loans have left many people financially ruined. Suffice it to say, it’s a two-way street where blame is concerned. Anyone who wants a loan should seek financial counseling first. And banks should be more responsible before approving someone for a loan. Here’s what you can do when a bank saddles you with more debt than you could ever repay.
You know that old piece of advice where you find that daily vice, and slice it away? It might be a shake from McDonald’s, a coffee from Starbucks, or something as simple as a candy bar from the grocery store. Well, it’s good advice. Those pennies and dollars really add up. If you’re an impulsive shopper, never go to the store on an empty stomach. Find a way to limit online spending. And be sure to pay off your credit cards as soon as you make a purchase (although for the purpose of this article we’ll assume your credit cards are nearly maxed).
The point is this: a few lifestyle changes can make a huge difference. Think about sustainability. Live out in the country, or anywhere else where you can own animals? Consider purchasing a couple hens. They take care of your egg needs and all they require for sustenance are the scraps from your table. Use coupons and cash-saving apps. Start eating healthier. Drink tap water instead of bottled. Don’t go out to eat. Use the library or websites to watch movies and shows (i.e. “cut the cable”). Unless you’re living out of a vehicle, you don’t need a gym membership.
Start using cash to pay for purchases. Psychologically, this is the way to go. When you pay with cash, you actually take note of the “loss,” so to speak. When you pay electronically, it’s much easier to part with money. Don’t make it so easy.
Another method is to list every debt you owe, and pay them off in the order from highest interest rate to lowest. Pay minimum payments on any other card, but use the lowest interest card for purchases.
Negotiating debt is one of the scariest actions you will ever take — in large part because your entire future depends on the outcome. But when all else fails, you need to do this. Find a financial consultant and a debt settlement attorney, and go to town making plans. Many banks sell debt to a third party, while more predatory banks — like Bank of America — will go after you themselves. Don’t make it easier for them.
Debt settlement isn’t just for credit cards. You can use it for help paying off medical bills, personal loans, retail cards, cash advance loans, student loans, and even car loans (if your vehicle has already been repossessed). Get cracking!