The first thing to do is forget about feeling embarrassed. When a person becomes self-conscious about debt troubles, they usually procrastinate. Face the problem and deal with it as quickly as possible. Your stress levels, along with your debt load, will be greatly reduced. Once you’ve reduced your debt you’ll be amazed at how relieved you feel, and how much more productive you’ll be. Every client we’ve dealt with has been happy once we’ve helped them resolve their debts. It may be hard to do, but don’t let embarrassment stop you from debt freedom.
Get professional advice – it will save you time and money. This sounds easier than it is, for several reasons. We all have friends or family we rely on for advice. Those people always do their best to help, but sometimes they may not have the knowledge base to give you the best advice. Here is an example: We had a client that had equity in their home, but weren’t willing to upwardly refinance their mortgage. They had over $70,000 in credit card debt and ran into problems when the family suffered a job loss. A close friend told them to transfer the title of their home to another family member to protect the home from creditors. That one bit of bad advice almost had our client being charged with fraud. We were able to correct the mistake and help them settle their debt for less than 50% of the principle. The moral of the story – always get professional advice!
Don’t put off dealing with your debt. Like we said earlier, putting off dealing with debt is one of the most common things we see. It’s also one of the most damaging things a person can do. Interest can cause a $20,000 debt to balloon to $30,000 a lot faster than you may realize.