If you are experiencing a debt crisis or if creditors are starting to take repossession of your assets to be sold at an auction, know that you can counter-attack. Do you need debt relief and have creditors off your back fast? You can be out of debt in just 30 days.
We live in times today where debt and credit are taking on wretched ratios. If you do not believe me, just have a look what is going on at the Credit bureau or at any office of the Sheriff. You will be shocked in your findings.
I have seen many cases where people come back from work and found that the sheriff have entered their property and loaded all the goods that were attached, or that all their belongings were packed out on the pavement with doors bolted. Can you imagine what it must be like? Where on earth do you go from there?
In a couple of hours it will be dark and you have to have a place to sleep in. My heart goes out to people who have had that happened to them.
Every person on this planet wants to get out of debt. It is such a great pity that we first have to fall into the debt trap and to experience and realize the consequences. None of us wanted to accept the advice that our parents used to give us regarding debt, is that not true.
Now that we are in debt, we want out, but we can not. Our salaries do not permit us to pay off an extra amount on our accounts, we barely make a living and we are living from pay check to pay check. In fact, every person working for a salary is about three months away from bankruptcy. Do not believe me? Just stop working for a month or two and I can almost guarantee you that you'll be bankrupt.
The law makes provision for certain choices.The first thing that you can do when your debt burdens becomes difficult to carry is:
Choice no: 1 – Talk to your creditors
Creditors are extremely high strung people. If you do not talk to them, they assume you are hiding or running away from them. You will be surprised at how many of these guys are prepared to listen to you. Try to explain your situation to them and come to a new agreement that you will pay them x amount every month instead of your full installation. Get it on paper so that they can not deny this fact you should be facing a summons from them at a later stage. If you have tried your utmost to talk to them and no agreement can be reached, then try for:
Choice no: 2 – Borrow money and consolidate your debt.
This choice can help you in the short term if you can manage to secure a loan to do this. When you do this you can actually reduce your total expenses by quite a margin, but I must warn you, this is a very expensive alternative in the long run and you could be making matters much worse than what they are right now. Obviously when creditors are threatening to take judgment against you, you sometimes have to resort to steps that you know for yourself are not the ideal steps to take. As I have said, this can help you out in the short term, but be very careful, money is expensive.
Now most people, when they get to this stage where they need to borrow more money to pay old debt, they are usually in a position where they have already been blacklisted by their creditors, and find that no one else wants to loan them any more money. So, you sit with a slight problem. You now have to choose either to face the music head on, or sell some of your assets to get them off your back.
If you start selling off items that has cost you dearly, for a fraction of what you have paid for them, you must know that something is very wrong. You are now grasping for straws and my advice to you is, do not sell your goods. You have worked hard for them, rather face the music. You will see in a while because I suggest you do not sell your goods. Now we have a situation that brings us at:
Choice no: 3 – Simply sit tight and do nothing.
This is a dangerous choice to make. This is when creditors start taking judgment against you and when the Sheriff of the court starts knocking on your door. When this happens they attach your movable assets to be sold at an auction.
Once an auction has taken place, they will still hold you liable for the difference between what you owed, and the price they got for your goods at the auction. The sad fact of the matter is that months and years from now, they can again attach your new accredited assets to be sold at an auction again.
Your creditor can now also apply for a garnishee order to be attached to your salary. This means that before you even see your money, they have already subtracted an amount from your salary to pay to your creditor.
Choice no: 4 – Put yourself under administration
When you exercise this option it will mean that you apply for an appropriate court order where you pay in a certain amount of money to a lawyer, who in turn will then divide it among your creditors.To go under administration your total debts may not exceed a certain amount. This limit may be revised by the law from time to time.
The problem with administration is the fact that the interest that accumulates on your debt may give rise to the fact that your debt does not really come down much and that you could be paying off this debt for a very long time.
When you put yourself under administration it will treat you from the burdens of creditors pestering you for money week after week.