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I graduated from college with a huge debt burden piled up on my shoulders. I knew that with my college degree, I would be able to get stable employment as well as a hefty salary. Then my first credit card arrived on the scene. I did not even bother to check how much it would cost. Within two years of working as an executive assistant, I was already drowning in credit card debt and have not been able to pay off my mortgage and insurance premiums. I even coined a nickname for myself, debt delinquent. Dodging the calls of the lenders is something that many resort to. If they can't reach you or find you, you're safe, right? WRONG! It would be a much better idea to explain one's situation to the lender and try to work out some kind of a solution. If only I had taken the time to talk to any one of my creditors, I would have been given a chance to pay them off instead of filing for bankruptcy. On my part, I have learned my lesson. The point is that you will have to repay the loan eventually. Your bank will want some of the money that you spent on your holiday sprees. So they will give you advice and options on how you can start paying off the money you borrowed. They are not as evil as you think they are. In fact, lending institutions can save you from falling into poverty -- or bankruptcy at least. Your credit card issuer will mostly likely give you amnesty, if you promise to pay them back with a span of time. Some lenders might be willing to lower your interest rates if you are genuinely cash-strapped. By talking to them, you will have a lot more options on how to settle your balance than by hiding out in the mountains until you think they have surely forgotten about you. But during this time, your credit card accounts might be closed as they do not want you accumulating more debt while trying to pay off your balance. If you have unpaid loans from various institutions, they will almost certainly advice you to join a debt management program or refer you to a debt counselor. You should avail of a debt consolidation loan if you feel over-burdened by too many loans that you have to repay. With consolidation, all of your debt will fall under one loan. You will no longer have to wonder whether you missed out on any loan installment as there will only be one every month. Do not worry so much about your credit score at this time, focus on paying off your debts. Besides, once you are done with the program, you can fix your credit score again. Just one point to remember is that student loan consolidation works differently and it does not affect your score. Reaching out to creditors gives them the impression that you want to pay them back and you're willing to do it on terms that are beneficial to both parties. By doing this, you build a certain trustworthiness which future creditors will bank on when you approach them for a loan. Get debt help and debt relief. While you are at it, find out what is an IVA. Be a responsible borrower.
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