3 Keys To Making Debt Consolidation Work Long-Term

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financing options after bankruptcy

Some people think that after you file for bankruptcy that they won't be able to qualify for any sort of credit for many years. Is this true? Would it be possible to purchase a car with an auto loan or get a mortgage for a house? I put together this blog to provide others with the information that I have worked hard to find. As I started the bankruptcy process, I was very worried about what it meant for my financial future. Fortunately, I have recovered and have learned a lot along the way. Hopefully, this information will prove helpful for you.

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3 Keys To Making Debt Consolidation Work Long-Term

8 August 2018
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Debt consolidation is an excellent method for conquering your debts and restarting your financial life. But it requires clear commitment. How can you achieve this commitment in a way that brings lasting benefits? Here are three key ways.

Create a Team

The best way to beat your debt issues is to have lots of help. Form a debt-busting team that starts with a debt consolidation attorney who can help you find the best legal and financial way of eliminating your debt. Then, add the help of close friends and family members who will serve as your cheerleaders and devil's advocates. 

Talking with friends and family about your financial situation is probably going to be challenging at first. But you're likely to find out that you're not alone. In fact, you may benefit the entire group by being open and honest with your debt consolidation and reduction plan. 

Build a Workable Budget

Depending on why your debt problems began, this step can be relatively simple or it could be complicated and require much fine tuning. If your debt load started as a result of a completed divorce, medical problems, or another one-time emergency, you may already have a monthly budget that you can easily live with.

If, on the other hand, your debt struggle is a result of things that haven't been resolved — such as the loss of income from a job that disappeared — creating a budget you can live with is difficult. But this is a key to not only reducing current debt but also moving forward without this same issue in the future.

Stop Using Credit

For modern-day Americans, access to credit is a part of everyday life. But when you're recovering from a credit hangover, it's important to live without it for a while. Not only will this help you focus on eliminating existing debt, but it will help you build a more solid financial future. Once you have made use of debt consolidation, destroy and close all the other forms of revolving credit you were using. 

Eventually, you'll probably be able to begin reusing sources of credit. But that's a later part of your journey. Focus on making current sources of income and debt payments all work, knowing that you'll be able to make good choices 

Ready to begin your journey to debt elimination and a brighter tomorrow? Talk to a debt consolidation attorney today to find out how it can help you take control of your life.