Wednesday, March 19, 2008

Avoiding Death by Debt

Some people nowadays are trying so hard to stay adrift with their debts. All around the globe, a credit crisis is emerging, and people are really struggling to make ends meet. Especially with the rise of consumer use of credit cards, a new trend is emerging. It's death by dept. It's really death because people are just living for the purpose of paying off all their bills (credit cards, mortgages, etc).
Well, I am in the same situation; but I guess I am far away from death. I have managed to avoid bankruptcy with a change in lifestyle and change in spending behaviour. Having a lot of credit cards can cause an illusion of having spending power. The reality is you could end up drowning in debt. Bankruptcy is the easyway out of these troubles, but it's not the right way. You have to accept responsibility for you debt.
First, I got rid of most of my credit cards, and tried to pay off as much as I could. Then I made a decision to limit my spending on things that are really needed. Also I got help with an
IVA to further my purpose of staying away from death by debt.
An Individual Voluntary Arrangement (
IVA) has helped me understand my responsibilty to free myself from debt. It is not the easyway out, but it is clearly a simplier way to manage your financies. You and the creditors agree on terms that will benefit you both in some respect.

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