Debt May Force a Woman’s Return to Work

Debt Consolidation

 

Debt may force a woman back to work; however, before it gets that far you might consider debt payment by some form of debt consolidation with a more solid goal in mind. I say that because any debt consolidation should be taken very seriously as it is surely an indicator of debt that is substantial enough to warrant desperate measures. The goal in mind is to avoid getting in this position again. And yes, I understand that that is not always possible. Let me say though, that while it can be, not all debt consolidation is bad.

 

Noninterest Bearing Credit Card Loans

First, there is debt consolidation through credit card companies who want to get your business by offering to have you transfer a balance riddled with interest to their company with no interest if you pay it off within a specified period. This is possible. I have done it. But you must be consistent in paying on time. Fortunately, these companies have made this more possible by offering automatic payments which are set up through your bank. You pay them the same amount of money each month at the same time. The only concern you have is to make sure that you have money in your bank account to cover this withdrawal.

So how do you do that? I find that the best way is to arrange for the amount to be withdrawn within a day or two that you are expecting a deposit. If you are not expecting a deposit, I would suggest that you do what you can to earn the money in advance and deposit it.

The primary problem with this method of debt consolidation is that the time to pay the debt off is limited to usually 18 months or somewhere between 12 and 18 months.  This usually results in higher payments.

Communicate about Debt

Nonprofit Debt Consolidation Companies

Second, there is another way to consolidate debts and that would be to seek a nonprofit debt consolidation firm such as American Consumer Credit Counseling. This is one of many and is just one that comes to my mind. You will work with a credit counselor to establish what bills you owe and how much you will have to pay for them, hoping that the counselor will be able to achieve a payment that is consistent with what you want to pay. This is not always achievable, and you may learn that you will have to give up something in order to be able to do that, i.e., selling something you recently acquired that you really can’t afford and or returning something that is actually returnable.

These companies don’t loan you money. They negotiate with the companies you owe, arrive at better ways to pay your debt, and tell you what they will need from you to pay off your debt. You give the consolidating company the same amount of money every month. In other words, you are still paying many companies through one payment as with other forms of consolidation. They also offer counseling to help you avoid this kind of debt in the future.

Peer-to-Peer Lending Companies

There is a third way to consolidate and that is to use a peer-to-peer lending company who will offer interest bearing loans to cover the costs of your debts through the Internet, where online businesses will pair lenders with borrowers. Clark Howard offers a great explanation of these companies.

L O A N S 

Even after all of the struggle to consolidate your loans to make them payable, you will continue to have problems with debt if you don’t learn how to live within your means.  Of course, this is easier said than done, but it is absolutely necessary to change the behaviors that got you into trouble to begin with.  Now, I am not discounting those unexpected, major events in our lives that cause us to get into debt.  They do happen, and we have to take some kind of action to deal with them immediately rather than wait until we get deeper in debt.

 

Poverty is about people lacking the tools they need to get on in life. And solving it is about tackling educational failure, antisocial behaviour, debt problems and addiction, and of course it’s about work. Theresa May

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Banks and Credit Unions

Loans from banks and credit unions are certainly possible and should certainly be investigated as an option; however, these financial institutions are generally going to require collateral.  Very often, they want to refinance your home mortgage for this. This is quite an undertaking that deserves a great deal of consideration, as you can imagine.

 

4 Replies to “Debt May Force a Woman’s Return to Work”

  1. What a great post – it is always a good idea to know your options. It seems like it is so easy to get into debt these days and not everyone knows how to get out of the hole once they’ve dug it – especially if you are at a stage where you no longer work. Thank you for the information!

  2. Thanks, Leslie for reading my post and for your comments. I agree that it is hard to “get out of the hole” but it is definitely possible.

  3. Fantastic post! Great info! I think money management should be taught more in schools, and that credit cards should be for specific purposes. They just get so many young people (and older I suppose too) in trouble. Anymore when you see nice things; a nice car, a nice house, a nice boat, etc. More often than not it’s not a representation of what that person can afford, but of how much they can borrow and how much debt they have accrued. You’ve provided some great information here, thanks so much for sharing!

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