So Many Shoes, So Little Money – Blog

In Debt?

April 30th, 2009

What do you do if you find yourself with a lot of unstylish debt you know you can’t pay back?

First, stop, absolutely stop, using your credit cards. Find a way to live within your means.

Second, pay off your credit card debt. If your credit card debt is the debt you can’t pay, you can often work with the credit card company to set up a payment plan or to reduce your interest rates. If your credit card company won’t help you, you can call a reputable credit counselor for assistance. Often, they will work with your credit card company and other companies you owe money to and can help reduce what you owe. Log onto www.consumercredit.com for assistance finding a credit counselor who can help you.

Third, if you have many types of the same kind of loans, consolidate. Consolidation means you group all of your similar loans together with just one company. For example, you can get a student consolidation loan where you combine multiple student loans and pay a fixed interest rate to just one company. Or you can combine all of your credit card balances onto one single card (with a lower rate than those you have) that you pay off on a regular basis.

Fourth, beware of scams. There are a lot of con artists who prey on people desperate to solve their credit problems. They may offer to get your debt “suspended” or “canceled” if you pay their fees in advance, sell you supposed credit protection, or offer to help you re-build your credit. These kinds of offers can be very tempting, especially when you are vulnerable. Remember, if it sounds too good to be true, it probably is. Keep in mind that saying about free lunches, as in, there’s no such thing.

The most crucial thing to learn about debt—after the number one rule, which is don’t incur it—is that you should always take it seriously. Wasting it on something frivolous does not become a true Fashionista. A true Fashionista searches out the highest style, but only at a price she can afford.

Filed under: Debt

Tags: Debt