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Getting Credit Debt
Help
Asking for credit debt help can be an
obstacle for many. Don't let pride and embarrassment keep you
tied to unmanageable debt. The good news is that you may be in
a position to help yourself get out of debt. This depends on
the type and amount
of
debt you have.
Understanding Unsecured and Secured
Debt
Mortgage loans and car loans are secured loans. This
means that the lenders have a "security interest" in your home
and vehicles. Home loans can be foreclosed, and cars can be
repossessed. If you own a home, you'll want to protect your
investment and avoid foreclosure. As for car loans, you can
contact the lender and ask if they will reduce your interest
rate or modify your repayment schedule.
Unsecured Debt Contributes to Financial
Problems
As fuel and food prices continue to climb, it's
easy to make ends meet by using credit cards. High interest
rates, late fees, overlimit fees can add to climbing balances.
Recreational shopping ("retail therapy") can be a problem,
particularly for women. Compulsive spending can lead to
financial ruin. The first step in getting help is
determining how much you owe. You must also stop using credit.
Certified credit counseling services can help you arrange
repayment schedules with creditors. If you are current on your
bills, focus on paying off the highest interest rate card
first, while making minimum payments on the others. Repeat
this with the next card, and so on.
Credit Debt Help for Homeowners
Homeowners
may have an option of refinancing or taking out home equity
financing to consolidate high interest debt. In today's
volatile real estate market, this option should be considered
with great care, and you must be able to avoid accruing more
debt after consolidating your bills with home financing.
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