Some people believe that, by filing bankruptcy, they’ll easily be absolved from past and current debts. However, debt consolidation is a better choice as it teaches you how to better manage your money. By consolidating your debt or obtaining the services of a debt management company, you can avoid bankruptcy and significantly improve your financial situation. Bankruptcies can stay on your credit report for ten years and can impair your chances of obtaining a good job, applying for decent housing, and purchasing insurance at lower premiums. Debt consolidation, on the other hand, shows creditors that you are making the effort to make your payments so you’ll be a good credit risk in the future.
Therefore, apply for a samla lån, consolidate your debt and, in the meantime, practice the following measures:
- Stick to a financial budget that you can manage;
- Avoid high-risk investments;
- If you don’t have the means to pay it off, don’t use a credit card;
- Quickly relegate any credit card offers to the wastebasket;
- Don’t buy more than what you can easily and comfortably manage financially; and
- Purchase sufficient homeowner’s, auto, and health insurance to guard against further monetary loss.
Use debt management and debt consolidation as ways to hone your skills in personal finance. Some people don’t realize that bankruptcy does not instantly clear on from debt. The ten years following a filing of bankruptcy can be harsh indeed as the action can leave a pall over you that’s rather hard to shake.
Debt Management and Counseling
Therefore, before you take any course of action that involves filing bankruptcy, it’s better to see what you can do to improve your financial situation. You may want to consolidate high-interest credit card debt by refinancing your mortgage at a lower rate. Just make sure that you can make the monthly payments as you stand to lose your home if you can’t meet your obligations. In some cases, you can withdraw money from your retirement account if it is stipulated in your plan. Do all you can to lower the burden via debt management and counseling.