NO one ever wants face a debt crisis but at one time or another in your life, you may have to deal with one. Having debt problems does not make you a bad person although some people feel a sense of guilt as they feel responsible for the decision that they have made that led them to their present circumstance. But keep in mind that no one is exempt from the difficult challenges that life throws at us at times and this could easily happen in the area of finances.
Most people do their best with the resources that they have but sometimes, it’s simply not enough. What do you do after you’ve gone through all your savings and emergency funds and perhaps even depleted your retirement plan just to stay afloat? Since the start of the recession, unfortunately, this is a reality that a lot of people have had to face so if this describes your situation, you’re in good company.
You may be in a serious debt crisis if you can’t even afford to make the minimum payments on your debts every month. When this happens, the solution is not to borrow more even more money because there is no way that you can borrow your way out of debt. The first step is to stop borrowing and to find a way to reduce or eliminate debt so that you can get your spending under control. If you are always spending more than you make, I guarantee that you will never get out of “crisis” mode.
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. Now the reason 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 have bitten off more than they could chew. I am talking about the people who have maxed out their credit cards and sometimes have even gone as far as desperately taking out payday loans for “quick cash” just to survive another month. But the following month, they are broke again and they are in a worse financial mess than the month before.
If you are facing a serious debt crisis or realize for the first time that you are trapped in debt, the worst thing that you can do is to be in denial about your situation. Most debt problems don’t have to turn into a financial crisis if they are dealt with right away instead of being ignored.
If you are struggling with debt, I want to help you figure out your best options. For a free consultation, call my office at Toll-Free 1 (866) 477-7772 and we will help you step by step in finding a solution that’s right for you. We have offices in Pasadena, Cerritos and Valencia.
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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 thousands of 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.
