Don’t Get Buried Under A Mountain of Debt – RJB Law Offices

Are you dealing with a huge mountain of debt that is causing a lot of stress in your life?
Debt is more than just a financial burden that people carry. Money issues permeate our lives, affecting our thoughts, emotions, health, and a lot of our relationships. People in debt are often living under a tremendous amount of stress and anxiety. The psychological impact it creates can be profound and at some point, takes its toll on our lives.
Everyday, I talk to people who are constantly struggling with feelings of defeat, helplessness, anxiety, and even depression. They worry about not having enough to pay their bills and take care of their families. They worry about not having a financial plan for retirement. They worry about not having any kind of emergency fund for those bills and expenses that often pop out of nowhere. I don’t think this is the kind of life that they want to live. But being in debt keeps them stuck where they are, unable to attain the financial freedom that everyone dreams about.
If you have lost control over your finances and don’t even know where to start, there are a few simple steps that you can begin with to gain financial clarity. At the moment you may feel lost, confused, and frustrated. But unless you take action to change your circumstances, NOTHING will change.
Begin by understanding the depth of your debt. Unless you understand and acknowledge the seriousness of your situation, you are likely to put things off and just keep hoping that somehow, “things will get better”. I have news for you: They won’t- because as they say, hoping alone is not a good strategy. You can be hopeful all you want but unless you have a reasonable and doable plan that you can follow, you are not getting anywhere. Debt problems don’t just solve themselves; it is up to you to act and do something about them.
Start by compiling a list of your creditors, how much you pay each month, how much your current balances are, and what interest rates you are paying. Next, figure out how much you need every month for living expenses. If you are not making enough to pay those expenses and still have enough money left over to pay your creditors, how much is the monthly deficiency? Obviously to make ends meet, you need to live within your means. But if you are over-extended on debt, there’s a good chance that you’re continuing to borrow money every month to account for the shortage. In other words, you may be robbing Peter to pay Paul. This is exactly what I see a lot of people do, and it’s a vicious cycle. The truth is that you can never borrow your way out of debt. Once your credit cards and credit lines are maxed out, you will be in a much worse situation than you were before.
I see some people with non-income producing assets that they can sell to get out of debt. Maybe an extra car you don’t need, perhaps real property that you can sell and convert to cash, whatever. The point is that unless you really take the time to sit down and look at your finances in detail, you may not realize the mistakes you are making or the opportunities that you are overlooking. A lot of people don’t want to do this for fear of what they might see. Some people tell me that they don’t even open their bills anymore because everything has been turned over to collections and they don’t know how they can possibly pay. So, they bury their heads in the sand pretending that their debt problems don’t exist. Don’t let this be you. You will never change what you don’t confront. Remember that.
Lastly, in some cases, filing for bankruptcy may be a good solution if it’s right for your situation. I know, I know. Bankruptcy has gotten such a bad rap that the mere mention of the word is enough to send chills down one’s spine. But the truth of the matter is that bankruptcy laws were created to protect and not hurt people. As a bankruptcy attorney who has represented more than 6,000 clients, I can say that bankruptcy relief has done more good than harm to a lot of people. Bankruptcy relief can be a big turning point in your life if you have run out of options. Often, it is best to plan ahead before things get worse and you have a real financial emergency in your hands.
Ray Bulaon is a debt and IRS tax resolution attorney in Valencia who has successfully helped more than 6,000 clients. For a free consultation, call 866-477-7772 or 661-775-4880.