We know that there are sometimes that you absolutely need money but all the doors are closed off to you. You can’t work another job. You can’t extend your already-stretched credit. It feels like the bills are coming in faster and the walls are closing in. However, you are rarely truly out of options. Even the worst options can have a silver lining. Here’s what to consider.
It might seem like this is something of a condescending point. You may already feel like you’re stretching your budget thin. But take another look anyway. Take the time to truly calculate your expenses. Look at ways to shave even a little off of things like household bills. Account for every penny you spend and are going to spend by using a spreadsheet budget. There’s always some way that you can live just a little more frugally. Even if it just means using a thermos of coffee instead of grabbing one on the way to work.
Creditors might seem like a scary bunch who will gladly rip you into pieces at the sign of financial trouble. However, the truth is that they want you to be able to pay them back without difficulty. They don’t want the effort of pursuing you. So be upfront with them if your financial situation is difficult. You might find that you’re able to negotiate a deal that helps you cope with your debt. Or you can always consider consolidating your loans, too. Just use that option wisely. It should be used to keep a cap on interest rates on loans. Certain lines of credit, like credit cards, already have that cap. You can make credit card debt worse by consolidating it.
If you’re a homeowner, use it
The home is a financial asset of tremendous value. It brings with it a lot of different ways to make a bit of money. For example, renting out your space. You can take in a tenant, rent out storage space or even rent out your driveway. Otherwise, you can use it to secure personal loans that don’t rely on credit.
If all else fails, you may need to consider whether or not you should bite the financial bullet. Dealing with the stress and turmoil of insurmountable debt is not a situation that anyone should find themselves in. Instead, consider filing for bankruptcy. It’s not always as simple as some make it out to be. It can be a process that takes a fine comb through your life. If you are truly out of options, however, it can erase your debt. You credit will take a huge hit that takes years to heal. But it can be the fresh start that you need.
The above points should help you when you really feel like you’re out of options. There’s always a path out. It won’t always be easy or painless, but what matters more is coming out on the other side. Not worrying about how you get there.