Bankruptcy and debt are two words we are hearing more and more these days.
Consumers are defaulting on home loans, looking for ways to avoid paying student debt, and leaving their keys in the car at the dealers and just walking away.
Can you somehow get a fresh start and walk away from your debt?…
Unfortunately, your debt is yours for life, and it is not going to go away. Whether you are considering leaving the United States for the United Kingdom or vice versa, that imaginary line in the air does not erase the money that you owe to creditors. You can move, but this problem will still be there for you to deal with at some point.
Believe it or not, picking up and moving would have worked about two decades ago. However, the advancement of the computer age has changed everything. In addition, debt companies and credit report agencies have offices worldwide, so there is literally no little corner of the world you can sneak off to and hide from your financial obligations.
The problem for most individuals is that you are going to have to get your credit checked at some point. Even apartment buildings will run a credit check before approving a rental application. The moment the report is updated, your creditors will begin contacting you again. At that point, you have only made matters worse by adding the cost of a move to your debt load.
They are more willing to work out deals with consumers today than in the past. Because so many consumers are defaulting on loans and credit cards, they know they are better off making the terms friendlier so the debt can actually be paid by the debtor. Otherwise, they collect pennies on the pound from a debt collection agency or just have to take the outright loss.
Contact your creditors and explain the situation before it gets too far along. More than likely, the first agent you speak to will not be able to help you, simply because they do not have the authority to approve something such as this. Do not waste your time and get frustrated. Briefly explain the situation and ask to speak to a supervisor or someone in accounts retention. They will have more experience and the authority to approve an arrangement.
When you take this approach, if it is credit card debt, the account will more than likely be frozen and unavailable for future charges. However, the benefit is that they may lock in a lower rate and you can now avoid over the limit or late fees.
But, before you make that call, sit down and organise your finances to come up with a realistic number that you can pay each month. This will give the bank or credit card agent a better idea of what they are working with and what type of terms they can extend so you can pay off your debt.