NO one ever wants to get into debt but at some point in your life, you may face a debt crisis. The reason is irrelevant. The problem may be self-caused or can be a result of circumstances beyond your control. Whatever the case may be, you need help and you need it fast. Oftentimes, options can be confusing so a lot of people end up doing nothing. This makes things even worse. Don’t let this happen to you.
First of all, let me say this: Having debts does not make you a bad person. Things happen. Most people do their best with the resources that they have but sometimes, it’s just not enough. Generally, I find that most people find it very uncomfortable to talk about the subject of money and debt so they tend to deal with their problems on their own.
How can you tell if you are facing a serious debt crisis? My definition of a "serious debt crisis" is where you can’t afford to make even the minimum payments on all your debts every month. When this happens, I see a lot of people resort to borrowing even more. But as I always tell my clients, there is no way you can borrow your way out of debt. For example, if you are using credit cards every month to pay other credit cards, this is inviting financial disaster, plain and simple. It is just a matter of time before your credit cards are maxed out and you will have a bigger mess in your hands. It has never worked and never will, trust me.
If your debts are huge but you are at least able to meet your monthly payment obligations, you may not be in a serious debt crisis but you may be in what’s called a "debt trap" if most or all your monthly payments are just barely covering interest charges. It’s called a trap because that’s exactly what it is. It means that you will be stuck in debt for the rest of your life with no way out. It’s not a place that you want to be but sadly, it’s a reality for a lot of people who are living way beyond their means.
It doesn’t take a rocket scientist to figure out that the first thing that you need to do when you are in more debt than you can handle is that you should stop borrowing. Maybe you need to prioritize your debts and determine which ones should be paid first but do not borrow any more. Cut up your credit cards if you cannot control yourself. If you need to take money out of your credit cards, it’s not your money and you are not free to spend it any way you want especially if you have no way of paying it back. The truth can’t be any simpler.
As an attorney, I see a lot of people who are so buried in debt that without filing for bankruptcy, they simply have no other way out. Of course, bankruptcy is a serious decision and should not be taken lightly. Some people are too hard on themselves and instead of focusing on finding a solution, they continue to dwell on past mistakes. But I always tell these clients that their past does not equal their future and if they can learn from their mistakes, the future still holds a lot of opportunities to rebuild their finances and their credit. Bankruptcy is nothing more than a fresh start for most people who need a second chance.
If you are facing a serious debt crisis, do not panic. Like most problems in life, what you are going through is most likely temporary and will soon pass. No financial problem is beyond help but it is important for you to find the right solution for your situation. Get informed on all your options and keep an open mind.
If you need an attorney on your side to help, we would welcome the opportunity to meet with you. To schedule a free office consultation, call us Toll-Free at 1-866-477-7772. We have offices in Glendale, Cerritos and West Covina.
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped over 4,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1-866-477-7772.
( Published on September 2, 2009 in Asian Journal Los Angeles p. B2 )
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