What Not To Do: "Solutions" That Make Your Debt Situation Worse

The realization that you are suffering debt problems bigger than you can handle often comes as a real shock - and such a shock can often lead to people making rash decisions to get "back on track" with their debt repayments.

You need to know that not every solution is right for you - and then there are some so-called solutions that simply need to be avoided at all costs. Jumping straight into something without considering the implications can lead to even worse financial problems than you had before, so be especially wary of the following debt "solutions":

Finance Companies

Not to be confused with banks, finance companies or "money lenders" to give them a more appropriate name, should be regarded with the utmost caution. Financial institutions such as these will make big, bold claims that they can solve all your money troubles - but there are many things that they won't tell you about.

Finance companies follow their own rules, and so they will almost always charge extortionate interest rates on their loans - much higher than what banks will charge. So even if you can borrow enough to pay off all your other debts, the total monthly repayment you are obliged to pay will often be much higher than what you were paying before.

What's more, they can be notoriously difficult to deal with should you fall behind on your repayments, and will immediately attempt to seize any assets you put up with collateral. Finance companies are not a solution!

Securing a Second Mortgage

Many people who own their homes are tempted to take out a loan on their biggest asset. With a home-secured loan, it may be possible to reduce your monthly outgoings and consolidate everything into one loan. But this is a panic option that can ultimately lead to even more stress and worry. Now that your home is at stake, the risk of defaulting on your repayments becomes even greater - creditors won't hesitate to seize your home if you can't meet your obligations, something that could ultimately leave your family destitute and with nowhere to live. A second mortgage is not a solution!

Payday Loans

One very tempting option is something known as the "Payday Loan", where an institution will grant you a small loan of a few hundred dollars to see you through until the end of the month. But those who opt for this solution often find themselves falling into a vicious circle - they borrow a few hundred dollars, then when it comes to payday they have to pay the loan back, with interest, only to find themselves short and needing to borrow again. Payday loans are not a solution.

Credit Repair Services

Those who are really desperate may go to even greater lengths to dig themselves out of the mess they're in, and resort to credit repair services. Such services promise to recover your credit rating and put you in a position where you can borrow further in order to pay off mounting debts. Sadly though, the simple truth is that these services do not come cheap, and very often they can do little to improve your credit score. It may be possible to fix something on your credit report if it isn't true, but this is a simple enough procedure anyway so long as you have proof, so why pay someone to help you do this? Credit repair services are not a solution.

So What Is The Solution?

Our services can help, we work with you to help you find a viable debt repayment plan that you can afford. Borrowing more money to pay your debts is not a solution - it's a recipe for disaster. The only true fix to your financial woes is to pay off the debt by yourself; something that we can help you to make affordable.

Contact us now for a free consultation using the form above and see how easy it is to free yourself from all your money worries, we can help you starting today!