Have you ever been in a very bad situation that you just want to have the earth open up to swallow you in whole? Were you ever in a position that is so distressing that you want to drop and leave everything behind?
Well if you are referring to credit card debt, that is exactly what you should NOT do.
Running away from your credit card debt, or any type of debt in general, is a very bad idea. As tempting as it may sound, you need to face it because in more ways that one, you brought this upon yourself. No one is at fault for your debt problems but yourself – unless of course you were a victim of identity theft which is most unfortunate.
There are many things that can happen if you choose to ignore your debt problems. For one, your credit score will suffer immensely. If you let your credit score go to ruin, you can say goodbye to any plans that you have to buy a home, open a business or to get a good employment. Times have changed and credit scores have risen to be one of the most important measurements of your financial health – specifically in defining how you handle credit. It is scrutinized by lenders, investors, employers and even landlords. While it may not be the end of the world, having a good credit score will open more doors for you than having a bad one.
Another thing that can happen is your debts will accumulate very fast – especially when you have a lot of high interest credit card debts. Think about it and do the math for a second. Late penalty fees are added to your current balance even when you are only a day late on your payments. That means an average of $30-$35. Apart from that, finance charges are added into your balance. Whatever is the sum of all of that plus last month’s balance, that will be the basis of the interest amount that will also be added to you payment. If you are late even for just a few months, that would mean a significant addition to what you originally owe.
Things will also turn for the worse because of the stress that you will have to face. As soon as you miss a payment, creditors will start calling you. When 4-6 months have passed and you still refuse to acknowledge your debt, the collection will be passed on to a third party agency who will be more harassing, threatening and abusive in their collection calls. That stress alone will make it impossible for you to ignore what you owe.
Understand that no matter how it hard may seem to get out of credit card debt, you need to man up to your own actions. Although it can be difficult, it doesn’t mean you cannot ask for help. There are debt relief options that will help you get out of debt even if you have a very limited income.
For instance, debt management allows you to make lower monthly contributions towards your debts. This is possible because you will be stretching what you currently owe over a longer payment term. The debt counselor that will be assigned to you when you enroll in the program can even help negotiate with the creditor for a lower interest rate – which will lower your monthly dues even further.
Know your options and keep in mind that running away from it all is not one of them. Be wiser and responsible when it comes to your finances. Your debt, no matter how grave it may be, does not signal the end of the world.