When faced with significant debt, one kind of response that people give is to deny the situation. They might not look closely at the numbers. They might leave their bills or other correspondence unopened and shoved to the side. Their spending habits might continue unchanged.
Denial serves a temporary benefit, providing stress relief. But the debts still accumulate, bringing you closer to the time when you might have to face serious consequences, such as frozen bank accounts, garnished wages, and legal action.
Furthermore, without a clear idea about the situation or your options, you might opt for debt solutions that put you in deeper trouble.
Assessing your debt with open eyes
A recent article from U.S. News & World Report offers some tips for paying off more than $100,000 in debt. Even if your debt hasn’t reached this amount, the advice they offer in the article is still useful.
One of the themes that emerges in the article is to assess your situation in a clear-eyed way.
For example, the first step they advise you to take is to make a detailed, thorough account of all the debts you owe, and to whom. Include information such as interest rates and due dates. You then have to take a close look at your monthly budget and see what expenses you can cut.
You have to also assess your spending habits. For example, if you make irresponsible use of credit cards, admit to the problem. Don’t deny it or try to downplay it. Similarly, make a frank assessment of every solution you’re considering. For example, if a creditor or a debt settlement company offers you terms that seem favorable, question it; look at the fine print and do background reading to help ensure you won’t get cheated (the article warns against debt settlement companies in particular).
If you live in Ohio, don’t hesitate to contact an experienced Piqua, Ohio bankruptcy attorney. One of the benefits of working with an attorney is that you’ll receive advice on what to do and get a clear analysis of your financial and legal situation.