The Financial Woes of Our Youth. (Part 2)

You don’t know what to do – you think it will just go away if you move, or get your sister/brother or parents to say you don’t live here anymore. This DOES NOT work. You will be tracked down, be it in 1 year or 10 years. All these black marks will sit there and collect dust until the day you need your credit rating for something like a home loan or even a new car. You will be denied ALL of that UNLESS you act now.

First – you MUST seek help. Contact the people you owe money to and try and negotiate a repayment plan, see if they will reduce/stop the interest. You MUST maintain that payment plan, the first time you default, it will be worse and they will not enter into another agreement, ever with you.

SecondIf possible, try and consolidate your debts into one payment, the larger the debt, the less fees are charged and sometimes the interest rate is lower. But this will only work if you haven’t already ruined your credit rating.

ThirdAlways pay off the highest interest debt first, but you MUST maintain payment on smaller, lower interest debts also, or your will have considered as having defaulted.

It won’t be easy – but you must knuckle down. You will have to go without – you would be advised to go back on a pre-paid phone. Stay away from shopping centres, use public transport whenever and wherever you can. Stop buying takeaway, learn to cook. It will be 4-5 years until you have filled the hole in – but it will be a lesson learned and perhaps a lesson that will stay with you for the rest of your life.

Life is not free, life is not easy. Do not make the mistake many young people are making today and think that interest free is the way to go if you want something. If the old one is still working, keep it, save up and pay cash. Credit is an evil and dangerous thing, that will consume your life if you are not careful.

Help is only a phone call away. It will not be pleasant, it will not be easy. But you have to do it.