There’s nothing wrong with getting debt help. Sometimes, people feel ashamed about their financial situation that they refuse to get help for their debt situation.
While your current financial situation is your responsibility, it should not make you feel like you don’t deserve help. We all make mistakes. It’s okay to try and recover on your own. But why keep yourself stressed and alone? There are people who can help you through these difficult times. You don’t have to suffer on your own. You’ll find it easier to deal with the debt relief process if there are people helping you out.
If you look around you, it’s common for people to struggle with debt. Moreso because of the current pandemic. One report said that during a time of emergency, Americans are more likely to rely on credit cards heavily. With unemployment rates increasing, it’s normal for cash funds to decrease. What will people use to pay for their food and groceries?
Their credit cards. This is why a lot of people will be facing huge amounts of debt in the coming months. And with the recession, things will only get worse. You can expect that a lot of people will be in need of debt help.
Are you one of them?
4 ways you can get debt help
Contrary to what you may believe, you don’t have to pay to get help for your debt troubles. You can look for a support system from the people around you. Find people you can trust. These are the people who you know love you enough to keep you working on your goals – even if you cannot do it anymore.
Just to be clear, the help that you will ask from them is not financial in nature. It would be great if they can help you with that – but don’t expect it. Sometimes, it’s more important to get emotional support from them.
But who are these people? Here are 4 types of people that you can expect debt help from.
From a spouse or partner
If you have a spouse, partner, or even your boyfriend or girlfriend, these people can be your source of main support and motivation. If you are in a relationship, this person is usually the closest to you. They should understand your debt situation. And if you really love each other, you should be honest enough to reveal that you need debt help. It doesn’t matter if you are not yet married. If you plan to spend a long time with each other, you should be honest from the very start.
Ask them to help you with your debt troubles by simply showing their support. If you need encouragement, let them talk to you through difficult times. They can also be there to listen. It doesn’t take much but knowing they are there to stay with you throughout the whole ordeal would really make a huge difference in your journey towards debt freedom.
For those who do not have a special someone to turn to, you can look to your family for debt help. They can give you the emotional support that you need. Maybe your parents can also lend you money to pay it off. These are only a few of the things that they can do to help.
But beyond that, your family can help you stick to your budget. By asking your family for debt help, you can encourage them to help you lower household spending. You can put everyone on a strict budget so any extra money that you will not spend can be used to pay off your debts. That should get everyone involved in the effort.
Your friends have a huge influence on how you spend your discretionary expenses. We also tend to pattern our lifestyles with each other. So if there is a group of people who can help you conquer debts, it is your friends.
It’s embarrassing to admit that you messed up your debts. But if these people are your real friends, they can help you overcome your financial troubles. What your friends can do if to encourage and support the lifestyle that you need to follow to pay off your debts. For instance, they will support the need for you to cut down on eating out. Or going out for entertainment purposes. They can even go as far as just hang out at home with you or do potlucks so you can still be together without forcing you to spend.
Finally, you can also get debt help from mentors. This can be anyone – an elderly relative, a colleague, or a respected member of your community. You don’t even have to personally know them. Look for famous financial gurus that you can follow can get financial advice from. Follow their blogs and listen to their podcasts. Research articles or download eBooks they’ve written. These materials will give you the information that you need.
Just make sure that you will not follow their advice blindly. If you will get debt help from any online source, do your research thoroughly. Get to know the effects of that advice and what changes it will bring to your personal finances.
Getting professional debt help
If you think that you are better off getting debt help from a professional, you also have that option. This does not always mean you have to pay a fee. Sometimes, there is no need to pay for professional debt relief services. Of course, the help provided will be limited. It’s very important that you completely understand your options so you know who you will approach for help.
One of the ways that you can find legitimate professionals to get debt help from is through the State Attorney General. But no matter how you find that debt professional, you need to conduct proper due diligence. You have to get to know more about the company before you can ask for their help. Read reviews about them or find out more about what they really do. That way, you will know what to expect.
So who are the professionals that you can choose from?
A credit counselor is one of your options to get professional debt help. When you talk to them, they will help you figure out your finances. They will even give you budgeting advice and other basic financial habits that will hopefully help you improve your finances. If you decide to work with them completely, they can create a debt management plan. This is a customized repayment plan that you can afford. It will be based on how much you can afford.
Once the debt management plan is created, it will be presented to your creditors for approval. After it is approved, you will send a single monthly payment to them. This amount will be the total monthly requirement of your multiple debts. The credit counselor will send it to your different creditors and lenders.
A debt negotiator is the other professional debt help that you can work with. They are like credit counselors. But this time, they will try to negotiate your debts. Their aim is to reduce what you owe. They will ask the creditors if you can pay only a portion of what you owe. Anything that you cannot pay off will be considered forgiven.
To make this happen, you will be asked by the debt negotiator to provide a settlement amount. It will be faster if you already have a lump sum money to use. Even if it is smaller than the actual amount you owe, it’s okay. It will be the basis for the negotiations. But if you don’t have the money, you will have to start saving up for it over a short period. In the meantime, the debt expert will keep negotiating on your behalf.
Creditor or lender
Finally, you can also ask for debt help from your creditors and lenders. The great thing about these professionals is you don’t have to pay them to help you. But you have to be ready to negotiate with them on your own. Ask them about your options to restructure your repayment plan. They have existing programs in place for this. Especially if you are in the midst of an economic crisis. From financial hardships to forbearance and forgiveness programs, you can choose what you will use. Just make sure that you will choose the program that you can afford. If you can’t commit to the program that you proposed, the creditor or lender might cancel everything. And it will be harder for you to propose a new one.