In 2023, the rate of bankruptcy filings rose by 13% (with a total of 433,658 bankruptcies processed through the courts)! Having your asset value overtaken by the debt you carry is a scary but not uncommon occurrence. You can take solace in the fact that it happens to so many people that there’s an entire industry ready to help if it happens to you.
Facing the loan recovery process head-on is the best way to get out of crippling debt as quickly as possible. Incorporate these three tips into your debt-repayment strategy, and you’ll be able to beat your debt fast.
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1. Communicate and Ask For What You Need
The quickest way you’ll be able to get rid of your debt starts with cutting back to a point where you’re living below your means. Your debt is already creating extra interest expenses, so you need to avoid adding additional expenses and debt.
If you don’t communicate with your creditors to ensure you’ll pay, they may get the courts to help them with the debt recovery process. If you thought expensive living was pricey, then you don’t want to know how costly court proceedings are.
Communicate with your creditors, tell them your plan, and don’t be shy about asking for grace periods, extensions, and discounted interest. It’s not the end of the world if they turn you down, but you win big time if they agree to help you.
2. Rank Your Creditors
The next thing you want to do is rank your debts. Prioritize accounts you can pay off quickly and creditors charging the highest interest on your debt. Once one account is paid off, you can funnel your larger cash flow toward more gracious creditors.
In this way, paying off your debts has a similar financial effect to investing in stocks that pay dividends. In both cases, your cash flow position constricts in the short term so that you can have more money available later. That’s also why it’s important to prioritize paying off all your debts before starting to save for retirement.
3. Work With Debt-Busting Specialists
In extreme cases, a person can become overwhelmed by the many different debts they have to settle. That’s when you need a debt resolution expert to help you. They can work out a solution, calculate costs, deal with taxes, and help you refinance your debt faster than you could alone.
For example, working with this debt resolution program puts you in a position where experts can calculate loan recovery charges and costs for you. All you have to do is pay a small fee and then follow their program.
Beat the Loan Recovery Process Today
Debt is a useful tool when used correctly but a terrible beast once you lose control. If you’re in the loan recovery process, then these are three great techniques for getting back into control.
Make sure your creditors know that you have a plan to pay them back and pay off the most expensive or quickest debts first. It’s also good to get some help from experts if your debt is truly overwhelming.
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