The current economic scenario has worsened the situation of an already debt ridden society and amidst salary cuts, job losses and real estate going bust, people are neck deep with a debt problem and are struggling to make their monthly repayments. Financial worries and debt can play havoc with the emotional and mental health of not only the individuals but the entire family. A secure home, enough financial resources to meet the families needs including food, clothing, day to day domestic needs coupled with educational expenses, health care, savings etc make heavy demands on the working couple to adhere to financial discipline.
Increasing debt is a trap that few people encounter in such troubled times. This simply means, one does not have enough money to pay back the monthly installments to bank loans, credit cards and other liabilities. If one continues to default on due payments, you will be 香港債務重組中心 declared a defaulter. This results in a negative marking on your credit history as well as the fact that the outstanding amount goes on increasing and the higher amount of penal interest gets charged on the principle outstanding. Non payment after a certain period of time will result in the credit company taking over the assets and selling them to recover the dues.
Coming out of this vicious circle of debt requires very hard discipline and a hard look at various options available in Debt Relief Programs. On personal front, you may re look at your investment and asset portfolio and try to liquidate non essential assets or high value assets to pay off the loans outstanding. Coupled with such measures, you would have to strictly cut down on the monthly expenditure and plan for every need and want carefully.
Financial restructuring options include many options such as Debt Negotiation, Settlement, Re structuring repayment plan, Debt consolidation etc. Bankruptcy is one of the last options available to rid yourself of unsecured debt completely. However this is not an easy option and should be the last consideration for anyone.
One of the most sensible things to do in such a situation would be to either discuss with your bankers and counselors on how to re structure your financial outlay or enlist services of financial debt relief consulting companies who will study all your current financial balance sheet and study your transactions and help you negotiate with credit companies to restructure your debt and reduce the same in line with your current disposable income. They charge you a fee as a percentage of the debt reduced. Though this can be a good solution to approach, there are many down sides such as ruining your credit and other possible negative outcomes. One must ensure that they choose the right consultants with good proven credibility and experience in debt relief projects. Be sure to consult legal and financial professionals before making a move.