How To Get Out of The Debt Trap

debt trap

We live beyond our means. We’re tempted to have this glamorous yet expensive lifestyle that we see on television. It’s all about the social symbol, even if we’re cash-strapped, we act and live as if we’re in a higher social status.

On the other hand, in some cases, people were cash-strapped due to unfavorable circumstances like losing a job, a death of a loved one, sudden expenses for schools and hospitals and some other bills.

The Irresistible Bait

Meanwhile, when you’re cash-strapped, it’s unavoidable to look for a quick solution to your financial problems. It may come in good term cash loans or some low-interest debt saving offers, but I will honestly tell you that these too good to be true offers are really rare.

If we’re really tight on cash, it often leads to desperate actions to solve it without even thinking about their consequences. It’s the reason why we’re always and willingly biting by the bait inside the debt trap.

Death Trap Explained

Free Consultation. Chat Now! The Business Dictionary defines debt trap as an incentive structure that lures individuals into accepting long-term debt obligations under conditions that strongly favor the lender.

Furthermore, victims of these traps find it difficult to escape or to repay their debts with the techniques applied by the wise lender such as unusually high or varying interest rates, sudden changes in the payment plans, and unreasonable high penalties for late payments.

Lenders are not saints or your “supposed to be” guardian angels. They’re skilled predators that often prey on vulnerable people.

At first, they will act like they’re the heaven-sent savior who emancipates people from their financial misfortunes. Little do the victims know that their dreams of salvation will end into a nightmare when the first billing statement comes inside their mailboxes.

The smiling lender who has a golden halo on his head when you’re signing a loan contract becomes a laughing man holding a pitch fork talking to you over the phone, asking you to pay them some unexplained and hidden charges with dirty computation tactics.

Now, you’re DEBT-TRAPPED! Expect the Unexpected!

If you’re lucky enough, you’ll be debt-free in a couple of years or perhaps maybe after a decade of poverty, but if a misfortune strikes you again, it’ll take you maybe a lifelong of agony and suffering just to pay off everything.

How Many Are Inside the Trap?

In the fourth quarter of 2014, the outstanding household debt grew to $11.83 trillion and as of early 2015, the total outstanding consumer debt in the U.S. has risen to $3.34 trillion. It’s like heaven on earth for the lenders and loan sharks, for they can have a limitless feast on the weak and desperate debtors who struggle to survive.

The Great Escape

We learn from our mistakes. We’re taught that experience is the best teacher, but when we speak of debt, one little mistake can cause us a fortune and valuable time.

Don’t be afraid if those lenders ask you to pay more than what you owe them. If those war heroes have escaped the death camp, YOU, on the other hand, can also escape from the debt trap! First things first, you need to equip yourself with a plan.

Don’t expect a miracle or a lottery jackpot when dealing with debts. Even though there are no hard and fast rules in being debt-free, a well-executed plan will make paying off your debt more convenient and smart.

They will help you plan and implement the applicable debt settlement program that fits your present situation.

Escape Route to the Debt Trap

Let’s say you and debt consultant made a brilliant plan to escape debt, but there are intertwining roads to the exact route of freedom. These roads differ in length so as it differ in the time you’ll spend until you reach the end of the trap. Here are some tips that will help you lighten the burden while you stride away with these intertwining roads:

How To Get Rid of Your Debt

Free Debt Consultation1. Save!
Saving is the best way to pay off your debt, but it requires you to sacrifice a bit of luxury in your lifestyle.

2. Generate Extra Income
I doubt that an extra job or an additional couple of hours of work will harm your work-life balance. As a matter of fact, it will help you earn more while using your spare time in a worthwhile endeavor.

3. Spend Smart
This is a tossed up between your WANTS and what you really NEED. Spending your money wisely have its positive benefits both in your life and in your financial standing.

4. Create A Budget
Creating a weekly or a monthly budget will let you focus on the things you really need. As I’ve said earlier escaping from the debt trap requires a well-made plan. Budgeting is the first big leap in the road to a debt-free future.

5. Consider Debt Settlement Programs
There are many debt settlement programs available. You may enroll in one these programs that suit your needs and capability.

About Debt Settlement

Debt settlement is the process of offering a large, one-time payment toward an existing balance in return for the forgiveness of the remaining debt.

Based on the accounts of those who escaped the debt trap, an effective debt settlement program allows them to only pay off approximately 40 to 60 percent of the total amount of your outstanding debt.

Financial Rescue LLC’s Certified Debt Consultants and Negotiators will work hand in hand to save individuals escape the debt trap.

For almost seven years, many of our “kababayans” has been living proof that our Debt Settlement programs brought the best solutions to their debt problems.

Don’t be cash-strapped! Avoid the debt-trap. Call us now for Consultation 1-877-97-DEBTS.