The True Cost of High Interest Debt, Magnified
Is high interest debt really a problem? Some people are starting to say that it’s not, and it means that regular families just need to focus on their everyday lives. The argument of just walking away from debt without consequences is a very bad one. There’s no one to just ignore the debt. Eventually, those debts are going to catch up with you. Creditors can force a County judge to levy a judgment against you. These judgments are indeed public record, so anyone and eyesore can look them up. If you have dreams of owning another home or doing anything else that requires credit, you could end up being very disappointed.
The point here is that debt matters. It’s not something that you’re going to be able to get away from anytime sooner. Just when you think that you have debts taken care of, it feels like old debts are shaken up and thrown back in your face. As long as you’re thinking about the best way to get out of debt, you can’t be wrong. You’re not really as behind as you think you are. Sure, our friends might tell you that you’re behind, and then you might feel like you just can’t catch up. But that’s not reality. That’s not something that you need to worry about. You have to focus on your debts, and you have to make sure that you’re taking it all in stride. Do things one little piece at a time.
The best thing that you can do about high interest debt is see if you qualify for any special program. Even though you might not like to think about it, doing an Individual Voluntary Arrangement is a great way to get back on track. The creditors agree to accept a bit less than what you owe, leaving you able to make realistic monthly payments. If anything, that’s the real problem with high interest debts — the interest becomes so large that it’s virtually impossible to make the payments that you would need in order to get out from underneath the debts. If you have just one debt that has a high interest rate, then you might be able to extricate yourself very easily. But what if you’re like many families and you have a lot of different debts piling up? That’s a great way to just make yourself frustrated. It makes much more sense to see that if you want to get out from underneath the debt, you need to explore every single program possible. That’s where the real success is going to be.
It’s time to make an action plan that you can trust. You need to definitely talk to a credit counselor that can address not only how you’re going to be able to find a road out of debt, also someone that can help you with the emotional side. There’s no shame in admitting that debt stresses you out. When you feel like someone is hounding you for money, you start wondering what your life is really supposed to look like. If you know that your life needs to be more than this, it’s time to get things turned up in the right direction. Why not look into all of it today, while it’s still on your mind?
