How To Get Out Of Debt Without Using Your Savings

July 14, 2014

Everyone will experience debt problems at some point during their lifetime, and so it’s important you know how to deal with them before they arrive. While many people panic and use their life savings for getting out of debt, there are other options available to you. Utilising the suggestions below could result in collectors leaving you alone. You should try to remove the need to give them the funds you’ve been accumulating since you started work. At the end of the day, it would be a shame to lose all that money, right?


Flickr credit

So long as you’re clever about the way in which you deal with debt collectors, you might even get them to stop chasing you without making a payment at all. As you will see from the information below, even collectors have to act within accordance of the law. So, it’s time to do some research and find out what rights you have.

Ask for the original credit agreement

No debt collector will win a dime from you in court unless they’re able to provide the judge with an original credit agreement signed by yourself. As debts are passed on all the time, the company chasing you probably doesn’t have that document. If you ask for it and they fail to produce it, you can contest the debt. While that in happening, collectors are unable to add any extra charges by law.

Start investing your savings

If it looks as though you’re going to have to use your savings in some way, try to invest them and creating a profit instead of handing them straight over to your creditors. That is one of the best ways of ensuring there’s still some money left when everything is settled. You could try your hand at the stock market, but that’s can be a little too complicated when you’re in a rush. Instead, take a look at the opportunities available within tax liens. There is a couple of companies in particular that you might like to familiarise yourself with. You can find out about Ted Thomas by visiting the website. Similar firms will have an online presence too.

Declare yourself bankrupt

Technically, you have to hand over control of your bank accounts to the official receiver when declaring yourself bankrupt. However, there’s nothing stopping you from removing your savings before you do it. It might be a little underhand; you can hand the money over to a friend or family member for safe keeping. If you do that, there’s very little the authorities can do about it. Just make sure you don’t start spending them on flashy items, as you might draw some unwanted attention. Remember though, bankruptcy should be seen as a last resort and bankruptcy can impact your credit.

Now you’ve read through that information; you should be better placed to ensure you deal with debt issues in the fastest and most appropriate way possible. Nobody wants to receive hundreds of different letters with red writing every month, so sorting things out sooner rather than later is a sensible move.

I wish you the best of success!

Leave a Reply