Debt Is An Ugly Word (How To Get Out Of It Quickly)! Part 1

Most people are not fortunate enough to go through life without running into some form of financial troubles.  For some people they lose their jobs for others they have a medical condition that sets in and in some cases there is a death in the family.  All of these things and many others could cause some form of financial hardship on an individual or family.

When this happens there are limited choices of how to keep a roof over your family’s head and food on the table.  You do what you can but the bills tend to pile up and you can’t seem to get your head above the water. First let’s discuss the places you might be able to get your hands on the finances you will need to work through the hard times.

Family and Friends – I didn’t say you would like the choices but you must consider your family and possibly a friend or two to help you through these trying times.

Personal Loan – If you have good credit you may be able to get the money from the bank or other financial institution.

Retirement Plan – You may be eligible to use the money that is in your retirement plans for personal hardship.  Check with your tax advisor on the rules for these.

Home Equity Line Of Credit – This is also known as a HELOC.  Although this is a choice keep in mind that your debt will now have equity behind it.  What I am referring to is that the bank has an asset to hold against your debt (your home).  This one should be a last resort.

Credit Card – Credit cards are the vehicle that many individuals and families wind up using to help get them through the rough patches.  There is no wonder that as a country we are in so much trouble with this type of debt.

In Part #2 we will discuss how to reduce the debt that the hardship has brought you.