The Debt Spiral
Deciding to stop the pain
So you've decided that now is not the time to deal with your debts. You probably have a good reason. But before you click away and put it off to some other time, you might want to get a look at your future. To be sure, not everyone experiences these specific events. But it's remarkable how similar the path is for those who end up in a debt spiral.
We've seen this pattern repeated many, many times. Your experience might be a little different. But, if you're counting on that, the odds are against you. Some experience these events quickly. For others it's a slower progression that takes most of their lives.
We hope that it doesn't happen to you. But we felt we owed you a glimpse of what we've seen hundreds of times so you'd be able to make an informed decision about whether to take action against your debt.
- It starts when you don't pay your entire credit card bill each month.
- Your credit card debt keeps creeping a little higher each month.
- Your credit score begins to fall.
- You stop contributing to your 401k or other retirement plan.
- Any thought of paying off your whole credit card balance at one time has disappeared. The question now is how much will the balance grow each month.
- Your take home pay isn't enough to cover your bills.
- You begin fighting with your mate over money.
- You take a cash advance from one credit card to pay another bill. The cash advance is expensive, but the only way you can avoid being late with the minimum payment.
- You apply for another credit card thinking that you can use it to pay off your other cards. You're offered a high rate card or turned down and not offered a card.
- One or more of your credit cards has raised the interest rate on new purchases. That means that less of each check you write to them pays for your purchases and more goes to pay interest.
- You find it impossible to pay all of your bills on time. At the end of each month you have to figure out which bill should be a little late.
- Money fights with your mate become a regular event.
- You need to remember which bill was late last month so a different one will be late this month.
- Your credit score continues to fall and drops below 630.
- Once again you try to get another credit card and are refused.
- One of your debts goes to a debt collector and you start getting annoying calls at work and late at night.
- You begin to wonder if you could lose your car to repossession.
- You begin to wonder if you could be evicted or foreclosed.
- You consider borrowing from family and friends. Whether they say 'yes' or 'no' your relationship with them will be hurt.
- You receive a notice that your electric and/or water will be turned off if you don't catch up.
- You begin to have trouble sleeping.
- Money fights with your mate become serious. You begin to consider divorce.
- You approach the credit limit on one or more of your credit cards. You begin to think about declaring bankruptcy.
- Your car breaks down and you have no way to pay to have it fixed.
- You recongize that your situation is hopeless.
- You finally realize that you can't solve it yourself and call in professional help.
If you're on this path you have a lot of company. About 1 in 3 Americans have at least one bill in debt collection.
You also have a choice. You can wait until the pain gets worse or you can get off the debt spiral today.
We'll show you how. We've assembled professionals to help you wherever you are in your debt problem. Professionals that we know (in some cases for 20 years!) and that we trust to be honest and able to help you solve your problem in the easiest way possible.
It will take a little courage on your part. But the sooner you address the problem, the easier it will be to solve it.
It's up to you. You can choose to ignore the problem until all your options and many of your possessions are taken from you. Or you can begin to take action while you still have choices. Why not get help now?
Choose the debt you'd like to tackle first:
- Reduce your credit card debt
- Lower your auto loan payment(s)
- Reduce your mortgage payment
- Reduce your student loan payment(s)
- Get help with unpaid taxes
If you are working to get out of debt, our free weekly Surviving Tough Times newsletter can be a great tool. Each issue features great ways to help you stretch your dollars and make the most of your resources. Subscribe today! Or you can like us on Facebook or follow us on Twitter. Simply look for posts marked with #TDSGetOutOfDebtCourse to get helpful ways to make extra cash and trim monthly expenses so you can free up additional money to put towards your debt.
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