When you’re in debt there comes a point when you just can’t keep going the way you have been. You need help to move forward and to start climbing out of the hole the debt puts you in. Being in debt can hurt a lot of people’s pride, and so it can be a humbling moment, and not always a pleasant one when they have to ask for help. But the help is there, and people are only too eager to offer assistance – providing you do your part as well.
debt help
Many people have some debt to deal with, and that is pretty much the norm these days. But for others, their debts are way too much for them to handle. If you are one of these people who is overwhelmed by your debt load, you may want to consider some of these tips:
1) Look into IVAs – An IVA stands for an “Individual Voluntary Arrangement”, and it’s a legally binding agreement between you and your creditors. If you opt for an IVA, you will most likely enter into an arrangement that lasts five years. You will be expected to pay what you can afford, so this option will provide some peace of mind and you won’t have to be overwhelmed anymore. To learn more and discover what other people say about IVAs, check out IVA reviews.
Taming Personal Debt by Paul Sampson
I recently picked up Taming Personal Debt from my local library and found it an easy to read, helpful guide for those who are struggling with debt. The book only takes about an hour or two to read and it covers everything from recognizing your debt issues to dealing with creditors.
Are you finding yourself overwhelmed by your debt load? If you are, you are not alone. In fact, according to a recent report by Certified General Accountants Association of Canada, Canadian household debt has more than doubled since 1989.
There is a short video clip on globeinvestor.com that will give you some advice on how to beat your problems with debt. Laurie Campbell, from a non-profit organization called Credit Canada, speaks with Rob Carrick about how to tackle your debt issues.
While flipping through David Bach’s book Fight For Your Money, I came across a section on payday loans. I have always known that payday loan companies ripped people off, but after reading this section of the book, I am more convinced than ever that payday loans should be absolutely the last resort in a financial emergency. In fact, I wouldn’t even consider a payday loan as a feasible option.
First of all, if you take out a payday loan, you will be charged outrageous loan payment fees. In the instance referred to in the book, a woman borrowed $400 and was charged a $60 fee.
Then, because she couldn’t afford to pay the full $400 at the due date, she was forced to take out another payday loan to pay off the first loan. This caused her to pay yet another ridiculous loan fee. Payday loan companies do not accept installment payments, so if you don’t have the means to pay off your initial loan, they have got you exactly where they want you – you will end up in a vicious cycle by taking out one loan after another in order to pay off the previous loan.
By the time the woman had enough to finally pay off her debt with this particular loan company, she had paid $1,780 to borrow the $400! That means she paid 445% in interest charges! Unfortunately, some payday loan customers get stuck paying as much as 1000% in fees and interest charges as it takes them longer to get out of the trap.
Payday loan companies may seem attractive, as they are willing to lend to anyone with a job, even if they have bad credit. Before resorting to such an option, do your research and make sure you understand the full implications of taking out a payday loan. Learn from other people’s mistakes and avoid falling in the payday loan trap.