For many people, following a debt elimination plan and becoming debt free is thought to be an unattainable goal. This thinking is partly due to the media saturating the news with stories of personal bankruptcy and foreclosures, generating mass discouragement, fear and financial paralysis.
The mindset is – “I’m broke and I’ll never get out of this mess, so I have no choice but to file for personal bankruptcy.”
Sometimes wiping the financial slate clean to start over is the only alternative, but it should be done only as a last resort. Unless you are extremely thick skinned, bankruptcy will turn you inside out emotionally and leave you feeling bereft and ashamed for years to come….not an experience that anyone would want.
It may very well be that you are not as broke as you think. Consider these possibilities for freeing up cash to go towards a debt elimination plan:
Do you have high ticket items you can sell?
In other words – an extra car, boat, RV, jet skis, winter skiing equipment, nice golf clubs and so on. You may be able to pay some big bills off just by selling these luxury items.
Is your garage full of junk you never use?
Stuff like camping equipment, lamps, wall pictures and kitchen appliances are things that folks will snatch up at a yard sale. Christmas decorations and lights (you’ll have to prove they work of course) are another quick sale, as are tools of all kinds.
Do you need a budget?
If you’re not yet on a budget, it is absolutely crucial to set one up as soon as possible. You will be amazed at how much you can save each month by watching your pennies and making every dollar count.
Have you thought about debt management services?
This type of service will work with your creditors on your behalf in getting payment amounts and interest rates down. This is a much better alternative to debt settlement.
Filing for personal bankruptcy is not always the only option and even if you owe tons of money to creditors, it’s always better to pay them back if you can. A good debt elimination plan can get most people out of debt in three years or less.