Wealth Building Strategies by Killing Off Debt and Investing
One of the biggest burdens in life is the burden of debt. It’s such a big liability, that man cannot die peacefully too while in debt. And if this is your situation, then you already know how big a problem it is in life. Some people get into debt just to buy necessities like cars, houses, offices, etc., and it’s a calculated choice and risk. Some people get into debt because they did not measure the risk factors and took impulsive decisions.
Sometimes debt crawls into your life slowly as you keep on borrowing small amounts from time to time from sources, and one-day things pile on too large to bring you under it. In some cases, debt is inherited, which means your forefathers leave it on to you to pay and suffer.
Wealth Building Strategies by Killing Off Debt and Investing
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Whatever way debt comes into your life, it’s always a slow poison – a slow killer. It eats off your earnings and never lets you accumulate enough money for savings and other investments.
If you have big plans for your future where you want to build wealth, then debt can never let that happen. Debt holds you back from all positive financial steps and decisions. Hence, wealth building stays a dream too good to be true when you are struggling with your debt. That’s why financial advisers and experts from around the world always say, that to build wealth and target a fortune in the future, you must get rid of all your debts fast. The faster you seek debt relief, the sooner you would be close to investing in wealth building.
No matter what brought you into debt, you must calculate your situation now to take a planned constructive decision to get out of debt
Make a note of the answers to the questions below:-
Some of the most important things you must learn about debt management to get out of debt systematically and safely are here.
Bankruptcy, debt settlement, and debt consolidation are three common ways people fight debt. Every method has its pros and cons and you can get a better idea from helpful sources like debt. The more you learn about each, the better you can compare it with your situation and decide the apt method.
Bankruptcy is a method apt for those situations when you have no other option than to declare yourself bankrupt. It happened when your dues are too huge, and your current earnings and the cumulative value of all your assets would also not be enough to pay off them. And you also don’t see any chance of earning that good to get a consolidated loan for the payment. Neither can you borrow a good amount for your bad credit status. It’s a total deadlock position when you have to get through this tough decision of declaring bankruptcy, and your credit history and records will all be affected forever although debts can be got rid of.
Debt settlement is a reasonable option that works for many. This works for you if you are in one huge debt or multiple debts. It’s not about managing all debts together, but about going to each lender on one and talking about settling the debt by payment of an amount that you can afford at present, although the amount would be much lower than the actual amount you owe. It’s not a mandate that a creditor will instantly agree and allow this. But there comes the art of negotiating and convincing them, for which in most cases people hire debt settlement agents and services.
It takes time for the negotiations to happen, and during that time you don’t pay any money to the creditor to put them under pressure. This may take several months to a few years, through which your credit score naturally gets affected and lowered for all the non-payments. However, after the negotiations are over, you must have enough money to pay that amount which has been finalized in the negotiation, to get waived off from all dues and debts finally. This process involves the charges of the debt settlement services too. Wealth Building Strategies by Killing Off Debt and Investing.
Another great option is debt consolidation. This is a simple case of taking one big consolidated loan which would enable you to pay off all current debts at once with all penalties, fines, and charges. This means you will be clear of all the old dues which had been affecting your credit score and mental peace. And then you will only be dedicated towards the payment of this one single consolidated loan.
Since you join together all your debts to get the final amount that you need to borrow, and you present papers of all current debts to prove how much you need to borrow to the lender. Hence this kind of loan or lending is called debt consolidation. Debt consolidation saves you from getting your credit score further affected. Also, this helps you in building new credit scores. But you have to pay the EMI for the full tenure of the consolidated loan.
After you have cleared all of your debts through one of these methods, you may then think about wealth building. For wealth accumulation and building, you need to make sensible planned investments. You may plan them on your own with ample market research. You may also hire any investment consultant for this. But investment is the only way to build wealth and hence must be practiced from an early age or as soon as you get over all of your debts.
Wealth Building Strategies by Killing Off Debt and Investing
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