When you first entered the world of work and began to stand on your own two feet, the world seemed full of endless possibilities. Every person who is now sitting in the red when it comes to financial status never thought it could happen to them. Yet when they realize there is no miracle fast-action cure for bad reputations among financial institutions, it all becomes too real. Despite living in a free society, you can’t really enact your wishes and dreams of living a better life without money. Yet life itself can be completely overwhelming so you do make decisions that in any other circumstance you wouldn’t. Slowly but surely you slip further and further into debt and become untrustworthy to those institutions. You will be seen as someone who is irresponsible and doesn’t the value proper care of your fiscal expenditures. So how can you avoid being the black sheep that loan companies, banks, and other creditors will avoid?
One of if not the largest expense in our lives will be paying for the place we inhabit. Consider changing your way of life to decrease the amount you pay for your rent, lease and or even mortgage. The other large adjustment you can make is to rethink your everyday expenses in travel. Perhaps you will need to consider selling your car that may be great to drive but guzzles too much fuel. Cut down on luxuries such as food items that are not essential to a healthy and nutritious diet. The purchasing of clothing items will also need to be brought down to a minimum. Don’t be afraid of such hardship as it won’t be a permanent attitude towards life.
Digging your way up
Perhaps a couple of decades ago, financial companies were horrified at the thought of helping you when you were down. This caused an effect that would inadvertently and potentially make things worse. Not necessarily as bad as kicking you when you’re down but definitely limiting your options. However, there is supporting mechanism such as a credit card for bad credit. If you’re in the red, you will have a reputation that can be accessed by the majority of banks and loan companies. Therefore they will avoid your name at will. In response to this, some companies have created lifelines that allow you to dig yourself out of the hole you’ve created. They study your credit score and make a credit card that dispenses funds to an agreed amount. So if you need a quick cash injection to keep the ball rolling, this is a fantastic option.
Don’t be too forceful
One thing you should completely avoid doing is pushing the boat out too far. If you have accumulated a reputation that makes you seem untrustworthy, don’t keep going trying to borrow. The more and more visits you make to banks and loan companies, the more your attempts are going to be logged. Companies and banks would rather see intervals between the time you’re in debt to the time you come back for more money.
Getting back on financially back on track is something that requires a steely determination. You will take a lot of hits along the way, but the toughest ways are usually the most educational. It’s very possible to dig yourself upward, but there are some simple solutions that require personal sacrifices.
MR LEE FRASER