You are at the edge from Back to School!
Utility companies and other creditors keep on reminding you each day of your payments. But you would pay off all your bills on time if you could. How can you put a stop to this? This is the question that you should ask yourself.
Bridge Financing
You may read, see or hear advertisement in the media inviting you to borrow 1%, 1.5% or even 2% loans. So you may believe that this is the answer to your prayers, is it? I am afraid not. This route will lead to more pain than you can even imagine. A one percent etc. loan is weekly interest rates quote and not annual rates as many people are accustomed to, therefore it means 52% per annum, not even the unsecure facilities at the traditional banks charge as much as half of that percentage rate. However, if you may, you would need to take it for a few weeks as bridge financing until you get your next pay cheque.
Hard time paying back
Other than a few weeks, this can mean you may very well have a hard time paying back, hence you may compromise your necessary assets i.e. your car; furniture; appliances etc. if you choose more than a couple weeks.
What’s an alternative? Talk to your utility company and make an arrangement with your other creditors as well or even make arrangement with the school to pay at the end of the month or so. Utility companies, creditors or schools are not insensitive as they may appear. They will accommodate you, within reason, if you approach them but you must honor your obligation, or else!
- Talk to your creditors
Call them – don’t wait for them to call you. If you are like most people, you have been avoiding them. Call them and explain what happened. Most creditors, given an explanation will understand. They would rather see you pay smaller amounts than none at all.
Budgeting plays a major role
Therefore budgeting plays a major role in escaping the BACK TO SCHOOL DEBT. This is very important where as this will result in you not compromising your necessary assets in order to pay your bills as well as pay off your other creditors.
