getting in and out of debt

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Post on 14-Jul-2015



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Getting in and out of debt

Getting in and out of debtGetting in to debt...the easy bitIt didnt take a lot of practice and it was way easier than I imaginedNow before I go any further with what I am about to say, I must point out that this is my story, my journey and my way of dealing with the situation I found myself inI am not stating that anything is right or wrongI am just telling it as it is from my view pointNow, where was I...As a youngster in the UK (Im now 43 years young), it was impossible to get creditCredit cards were unheard of and even getting a mortgage was a tricky propositionThe only available credit came in the form of mail-order cataloguesSo, if you had credit, you couldnt afford anythingYou were poor!Credit was a bad thing, it was frowned upon and it was not a status symbolIf you wanted something, you either saved for it or went without itIt was the British way tighten your belts, stiff upper lip and all that!The point is, something has gone slightly astray over the past 30 years or soIm not saying that something evil has happened and we are victims of a global conspiracyThere is nothing wrong with making money or owning anything we just seem to have skipped a few chapters and want everything nowForget the waiting, forget the hard work and forget the savingWeve become a generation of instant gratification junkies and we are handing the same traits down to our childrenThis isnt to say that I got these traits from my parents, far from itMy parents strived hard to become successful and still save to this dayWhat I got from my parents was their spending power, their ability to go out and purchase the bestWhenever they wanted toI didnt see the hard work and saving, just the ease at which they could go out and get whatever they wantedObviously Im not alone or banks and credit card companies would not be the vibrantly successful entities that they are todayI dont know why our parents forgot to hand down the skills of savingMaybe they didnt forget, maybe we just forgot to listenToo busy staring at all the shiny things for saleWeve walked, wide-eyed, in to the bright lights of the marketersWho havent stopped offering us everything that we could ever want or desireFor me, that is how it startedA teenage girl who had the tastes and spending habits of a Captain in the Merchant Navy and his Paediatric-Nurse wifeAdd to that the birth of the credit card and there was no need to saveThe World was my playground and I could pay for it in monthly instalmentsSo, fast forward a couple of yearsIve got a good job but my spending is out-stripping my earningsIve got a young family and reality is starting to bite hard, but I am slowly learning my lessonAs a family we are still running up debts but over the coming years I catch several lucky breaks with the property market and manage to get rid of my debtI inherit a plot of land and decide to build my own placeFast forward to 2009, the house has been built but my luck has run out and the build went way over budget, mainly due to the rapid rise in the property marketThe UK property markets then suddenly nose dive and Ive got a mortgage on a house and plot of land that is now worth exactly what it cost to buildMy marriage is failing and Im struggling to keep my head above water debts are mountingI find some of that British resolve somewhere in me and get all of the debts under control and walk away from my shattered marriage with less than 100 to my name, but making sure that the joint account was 700 in creditI then make the biggest School girl errors of my lifeI take my eyes off the ballWhat ensued was the divorce from hell, where my ex-husband racked up massive debts in my nameIn short, I had no money and I had debt collection agencies beating a path to my door, calling at all hours and sending threatening lettersHere in the UK, if you have a lot of credit it will affect your credit ratingIf you have a missed payment it will affect your credit ratingIf you are self-employed it will affect your credit ratingIt is near impossible to get a consolidation loan once your credit rating has been affectedThis is not a bad thing it just means that you have to face everything head onI had no money and no way of getting credit so I needed a way to get everything back under control without getting me further in to debtSo here is what I didBy the way, I was shown this method by someone who had used it to get rid of massive debtsSo I knew from the very beginning that it would workFirstly and most importantly, you have to change your perception of debtIt is no longer a taboo subject and you cannot go to jail for being in debtDebt has become a fact of life so there is no need in burying your head in the sand, hoping for it to go awayNext you become organisedYou get to the bottom of your income and expenditure and find out exactly where all of your money is going and you write it all down or put it in a spread sheetYou then find out all of the information of the debts you oweAccount numbers, balance, payment schedules, who your creditors are and their contact detailsYou then proceed to contact your creditors either by post or via emailNever, never, never contact them over the phone, unless it is to make general enquiries about your account and who to contactYour financial situation is set down in writing along with your payment plan and is not open for discussion or debateYou also request from that time forward that all communication between you and your creditor and their agencies is by post onlyYou then finally remind them that it is illegal to harass or threaten you with legal action, especially as you have taken steps to sort out your debt problems and that your payment plan will only be revised WHEN and IF your circumstances change for the betterSo What Do You Offer Your Creditors and Why?Simple your income and expenditure sheet will show exactly what you have going in and outIf you are in debt then you will have more going out than coming inNever make offers of payment that are unrealistic to keep upNever be afraid to offer the bare minimum payment as a token gestureIf you have to offer $1 per month on a $20,000 loan then so be itBy doing this you are showing willingness to accept responsibility for your debt and being proactive in dealing with itCredit companies hate you doing this and they will then pass your debt on to one of their agencies you repeat the same process with their agenciesRemember this one point, if you have been proactive in dealing with your debt, the credit company or their agency has to comply with your planNo court in the World will ever make you pay monies that you cannot affordIt will rarely go to court (if it does you just send the same papers to the court) and the creditor will begrudgingly leave you alone, as long as you maintain the payment schedule that YOU laid outIf you ever do mess up just repeat the same process and lower your paymentsCredit companies can only force repossessions on you if you have not dealt with your debtThey do this by going to court and proving that you are ignoring themIf youve dealt with it they cannot go to courtSo always deal with itNext Part Of The PlanYou can then either maintain your payment schedules for the next five years (the debt has to be written off after 5 years and cannot be forced upon you forever if you do not have the means to pay it) or you can set about paying off one debt at a time by making cost cutting part of your new life style and by using the spare money you were spending on the debts to focus on each debt, one at a timeAnother point to note as youve told your creditors of your financial situation you can also request that the interest be stopped on your debtAs the debt is going to be passed on to one of their agencies (sold on) the interest will stop and has to stop by law because your original contract was with the credit company and not their agencyAs each debt is repaid you can apply to your credit reference/scoring agency to have that debt removed from your recordThis then builds up your credit score again should you want to do soPersonally we live free of credit and have returned to the old ways of saving for things that we wantOne final note some of you may read this and think it is not legal or ethical to get your debts under control in this mannerI can assure you that the law is fully on your side as long as you take action and stick to your planHowever, it is illegal to make false statements about your income and expenditure, so just be brutally honest about itI personally do not agree with the corporate identity method of dealing with your debtsI know people have done this and gotten away with itI also know people who have failed and gone to jail for trying itIn my mind, if youve run up a debt, it is yoursTrying to wriggle out of it by claiming that you are not the corporate identity that the debt was issued to is not ethicalBut also ask yourself this: Is it legal or ethical to sell consolidation loans to people who are already in debt? Legal maybe, ethical no! It comes under the guise of racketeering for extortionate credit transactions or profiteering from manipulation of prices Just my thoughts!To finish, there is always hope, and the sooner you put a plan together and start acting on it, the sooner everything will start to turn aroundSitting with your head in the sand and bemoaning your lot is not constructive and will only lead to more miserySo, regardless of how you tackle your debt, tackle itAccept it, own it, deal with it and get it back under your controlGet back to being happy as quickly as possibleIf you want a full Blue-print with templates and step-by-step action plan go and get my guide


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