We've all heard of some people being so over stretched with their credit card usage that they apply for a new one to service their existing credit cards. They can only go so far with this method until the financial institutions refuse them another credit card. In the meantime, the interest they are paying on all of their cards is huge. They pay only the minimum interest, leaving the principal debt often untouched. Additionally, there is still the electricity bill, the mortgage or rent and food bills to pay.
Sometimes you get turned down because you don't have a credit history. Additionally, you may have just arrived in the country or you have never applied for a loan before and you have paid your bills on time every time. The reason you are usually turned though is because your credit rating isn't good enough or there have been too many entries or notations on your credit rating file.
Other people have to work overtime or have second or even third jobs just to pay off their debts. They sometimes have no idea how much they owe and don't want to find out the extent of their problems because they are afraid to. It reaches a level where they are even too afraid to answer the door or the telephone in case it's someone else demanding money. Bills are left unopened and collect in an accusatory pile on the table. They have no savings and no way to manage their bills. If an emergency occurs, they can't deal with it. They feel as if there is no way out. Often, one spouse keeps the debt secret from the other, leading to arguments, recriminations, separation and sometimes divorce.
What to do about it? They should reconsider carefully the option of bankruptcy. Even though there is less social stigma than there used to be, it can cause major problems for obtaining credit in the future. They can easily deal with money collection calls by reporting any harassment to the Office of Fair Trading or similar consumer affairs departments. They need to acknowledge that they are in serious financial trouble and to seek advice to find practical options like a debt consolidation loan.
Debt consolidation will reduce their monthly payments and allow them to pay just one loan and free up some much needed cash for necessities. Above all, they need to decide to take any necessary action before it is too late and they are left homeless and incapable of getting any credit in the future. There is real hope out there.
Sometimes you get turned down because you don't have a credit history. Additionally, you may have just arrived in the country or you have never applied for a loan before and you have paid your bills on time every time. The reason you are usually turned though is because your credit rating isn't good enough or there have been too many entries or notations on your credit rating file.
Other people have to work overtime or have second or even third jobs just to pay off their debts. They sometimes have no idea how much they owe and don't want to find out the extent of their problems because they are afraid to. It reaches a level where they are even too afraid to answer the door or the telephone in case it's someone else demanding money. Bills are left unopened and collect in an accusatory pile on the table. They have no savings and no way to manage their bills. If an emergency occurs, they can't deal with it. They feel as if there is no way out. Often, one spouse keeps the debt secret from the other, leading to arguments, recriminations, separation and sometimes divorce.
What to do about it? They should reconsider carefully the option of bankruptcy. Even though there is less social stigma than there used to be, it can cause major problems for obtaining credit in the future. They can easily deal with money collection calls by reporting any harassment to the Office of Fair Trading or similar consumer affairs departments. They need to acknowledge that they are in serious financial trouble and to seek advice to find practical options like a debt consolidation loan.
Debt consolidation will reduce their monthly payments and allow them to pay just one loan and free up some much needed cash for necessities. Above all, they need to decide to take any necessary action before it is too late and they are left homeless and incapable of getting any credit in the future. There is real hope out there.
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