If you have had your savings in the stock market you might be in a bit of a panic. Many people have their savings and retirement plans invested in the stock market. 2018 has brought upon some of the biggest losses in stock market history and many analysts do not believe it is over. If you have borrowed against margins you maybe facing insurmountable debt. In fact, many may be looking at their stock market losses and bankruptcy.
Plan of Attack
Being in debt can leave you feeling truly depressed as it can feel impossible to dig out of debt. Do you have a plan of attack to get out of debt? Have you looked at debt consolidation? Can you cover your margins?
Paying down debt and debt consolidation is not only about finding the right financial tools, but also the right psychological ones. You should understand how you got into debt in the first place.
Perhaps you lost your job had a medical crisis or an emergency home repair. Maybe you’d already drained your emergency fund when misfortune struck again. Perhaps your emergency fund was in the stock market which just saw record losses in October.
It’s important to understand the why and how of your debt to create the best debt attack plan.
You need to understand what motivates you. Do you want to pay down your debt in the absolute fastest amount of time possible? This strategy can make you more depressed giving up many things you enjoy. Or do you want to take some little wins along the way to keep yourself motivated? It can be like losing weight. Are you going to be a diehard and cut out all sweets and carbs or treat yourself at milestones?
If you have the means, you should look into counseling or debt support groups to understand the why how and your motivations.
Debt Strategy Steps
The first step to debt strategy is knowing your credit score. There are many available and you should be able to obtain yours for free. Credit Karma is one of many online tools to determine your credit score.
The second step is putting together a debt payoff strategy is to understand what you’re eligible to use. If you still have a decent credit score this can be of huge value. If you have the ability to cover your stock margins you should do so in an unstable market.
A credit score of less than 600 will make it difficult for you to qualify for a personal loan and will eliminate you from taking on a balance transfer offer. Personal loan interest rates can be significantly lower than high interest credit cards.
In addition, you can look into credit card consolidations. Contact your credit card companies to see what you may possibly be eligible for.
If you have a low credit score, are skipping monthly payments, have stock market margin calls or have no idea how you will handle holiday spending and have no emergency fund you may want to consider bankruptcy.
Bankruptcy isn’t for everyone and if you can consolidate your debt to a point where you can make monthly payments you should do so.
If you feel you simply cannot dig out on your own and want to discuss bankruptcy options I am happy to help. I provide bankruptcy attorney services to the entire Denver metro area including Littleton, Aurora, Englewood, Lakewood, Arvada, Centennial, Parker, Brighton, Broomfield and more.