-video of Vietnam vet – foreclosed house guy-
I took this video in front of a supermarket in Columbus, Georgia as I was interviewing people about their financial well-being. I was surprised that something as awful as a house fire happened so recently to the interviewee. Perhaps even more surprising is that the government hasn’t stepped in to help this Vietnam vet. It’s not said in the video, but he’s actually homeless. You can prepare for bad events that will inevitably to dodge the aftermath you need the right attitude to keep on living. Another takeaway from the video is that his house went up in flames but his debts didn’t.
In the second clip we see a man with a more common emergency which is job loss. How interesting it is that this emergency made him lose his house just like the vet in the first clip. After it was foreclosed on, he was fortunate that he was able to stay with his mother. But the duress and humiliation of foreclosure certainly continued for a while afterwards. Perhaps this upheaval served a purpose because we learn that he had no real financial problems afterwards. We can be sure that keeping his job became his number one priority.
It’s obvious that this issue of debt is something that needs to be discussed. Are you part of the large American population segment has credit card debt? If so, getting rid of it needs to be a #1 priority is your life. Your first step is to call your credit card companies and request a lower rate. This advice seems too simple but the reality is that you probably haven’t done it. And if you do it now you could be cutting off years of repayment. This means more money for you and your retirement.
Another thing to consider is if your balance is astronomically high, you need to consider debt consolidation or debt settlement. Either of these options could have negative consequences on your credit report. Choosing debt consolidation will free you from debt collector calls and be less derogatory on a credit report. And if you’ve missed payments, some creditors will “re-age” your account. This means that they will say to the credit reporting agencies that you made your monthly payments on time when in fact you didn’t. Also, banks will give you a lower interest rate that’s reasonable.
Choosing debt settlement opens you up to calls from debt collectors fro around 5 months and it is more derogatory on a credit report. You will definitely be shaving off a lot of what you owe through debt settlement, but this savings can be taxed. Also, during the settlement process, creditors may decide to sue you. And if you have many card balances, there is a strong chance that one creditor may not agree to settle.
In a nutshell, if you do choose to settle with your creditors, there is risk. But the risk is small enough so that debt settlement is a valid option. Through this venue, you can cut the amount you owe to about 20 to 40 percent of your original balance with no interest rate. The end result will help you avoid bankruptcy and become financially free much faster than bankruptcy.