How To Get Out Of The Money Trap

How to get out of the money trap can be a nightmare.  Once in the trap it is almost impossible to get out of it. It is so easy to get into debt. Credit cards, overdrafts, store cards will soon run away with your money.

Thats how those debts start mounting up?  Credit cards are the main cause; once you reach your limit it is easy to get another.  Many are tempted by the adverts saying you can transfer your balance to an interest free for nine or 12 months credit card. You now have two credit cards and your old credit card has a clear balance again once you transfer the balance to the new one.

Once you start spending on your old credit card again you then have two monthly payments to pay out. This can happen over and over again as it so easy to get new credit cards while your credit is good.  When you run out of options with credit cards  you may then be tempted to get store cards, it is so simple, but store cards have very high interest rates  which when you are applying for one it is just a figure and nothing to worry about so you tell yourself.

The main problem with cards is that it is so easy to spend with them, it is not like going into a shop and parting with money,  If the money was in your purse or your wallet you would think twice before spending it unless  it was really necessary .

Buy Now Pay Later, are great slogans and drag people in like a spider does a fly, but sooner rather than later that pay time comes around  as nothing is free.

By now those debts are in the thousands and you are at your wits end trying to juggle between them wondering how to pay them.

There is one payment you must never miss and that is your mortgage or you could end up homeless, and you should never go to a money lender as their interest is phenomenal.

You have now reached the end of the road and you have a few options open to you.

The first is to make an appointment at Citizens Advice Bureau.  They are there to help you and advise you on how to get out of the money trap.  They treat your case with confidence and even do a lot of the paper work for you by writing to all your debtors and applying for a reduction in your payments.

You needn’t feel embarrassed in any way as they are quite use to sorting this out as there thousands of people in the same boat.

Your second option is to write to each of your debtors yourself, explain carefully about the position you are in and offer to pay an amount you can afford each month. If they accept the offer then you must pay that amount promptly every month without fail.  If you miss payments it is then their right to demand the whole amount due and you will then face the courts.

Your third option is to sign up to a debt management company; they will sort everything out for you and come back with a very low monthly payment that you can afford.

You will be paying this for a good number of years as the company takes part of your payment each month for all the work they do for you.   Your credit rating will now be nil and it will be a long time before you can get back on the ladder again.

Your last option as far as I know is to go bankrupt but that is a no win situation which you should avoid at all costs.

When you finally get all paid up and clear it is to be hoped that you don’t get into that situation again, hopefully you will have learned your lesson well.

+ Site/Blog:
+ Find sylv on:  Google+   FaceBook   Twitter

Leave a Reply

© 2018 All rights reserved. Entries RSS · Comments RSS
You may post a link to the articles contained on this site. However, you are not allowed to post full articles from on any other website or blog. Violators will be prosecuted.
Terms of Use | Privacy Policy