Individuals typically have very good intentions about managing debt and responsibly using credit. Often through unexpected issues, including using credit cards for emergency issues such as vehicle repairs, or unplanned bill payments, the balance can become unmanageable.
This becomes even more significant if the individual also has other types of debt. Debts such as student loans, mortgages, car payments, and recurring bills make it difficult to add more to credit card payments.
The debt consolidation professionals at 4 Pillars have provided some of the common mistakes people make when they find themselves struggling with debt. Recognizing these mistakes and reaching out for help from 4 Pillars is a practical solution to avoid adding to your debt burden.
Mistake 1: Ignoring the Issue
Perhaps the number one issue the debt consultants see at 4 Pillars is people simply ignoring the issue. This can include intentionally not opening mail from creditors, ignoring phone calls, or choosing not to make monthly payments on all sources of debt.
Mistake 2: Not Reaching Out to Creditors
Individuals who have a record of on-time payments with creditors should reach out to the creditor and see if debt relief is possible. Creditors may reduce interest rates or agree to other plans that can be helpful when short-term assistance is all that is needed. They may even offer long-term solutions for repayment based on your history.
Mistake 3: Making Only Minimum Payments
Making only minimum payments results in thousands of dollars in interest paid out over the years. Adding a small additional amount to the minimum payment, whenever possible, can help lower the time and the cost of debt repayment.
Proactively addressing debt is always the best option. It provides the greatest range of solutions and options regardless of the type and source of debt.