Start Now (I of III)
This is a three part series on how to get a handle on your debt.
There is no time like the present to get started on repairing
your bad credit. Whether you choose to do that by working with
each of your individual creditors to either set up a payment
plan or pay back less than what you owe – or if you choose to do
a debt consolidation – it is your choice. But by not making a
choice – you are making one.
Debt is not something you can ignore and hope it will go away.
You have things you can do to take care of it – before it puts
you in a court room. First thing is to look at the amount of
debt that you have and divide it up into secured and unsecured
debt. You are then going to want to look at each one
individually.
Secured debt is a big deal because it has some sort of
collateral with it. That means that if you don’t pay – they take
what you put up to guarantee the loan. Usually this means a
mortgage – where you put your house up as collateral; or an auto
loan – where you used your car. If you do not pay – they take
your house or your car – it is really that simple.
So if you are behind on your mortgage you will want to call your
bank. Tell them the situation – death in family, lost your job,
etc. They do not want your house! They will try and work with
you the best that they can so that you can keep your house and
eventually pay them back. The same is true with your car – but
not as dire a situation. They are more willing to come repossess
your car than the mortgage company is – but they still don’t
really want it.
Next time we are going to talk about car loans and how they are
the same, yet different from the way that you handle your
mortgage.
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