Thursday, February 21, 2008

When You Hit Financial Rock-Bottom

Being employed in a financial institution, I encounter a lot of stories about clients who are having trouble in the management of their credit line and loans with the company. Some of them literally have to beg the company to give them more time and adjusted rates so that they can hurdle their existing accounts. In cases such as these, the company first studies the financial condition of the client and then tries to offer a restructuring of their credit line with easier terms and rates. Some clients get through their credit ordeal with this restructuring plan. However, there are still some clients that unfortunately could no longer pay their debts altogether even with the remedial plan offered by the company. Thus, the company and their other creditors may end up going after their other accounts and properties as the client files for bankruptcy.

To avoid these instances from happening, it is essential to formulate a Debt Managment Plan. Having this plan is the solution to avoid the risk of bankruptcy. Especially for those who almost hit rock-bottom financially, it is good to request a good financial advisor to offer available solutions in managing their debts better and reclaiming their lost financial reputation. These financial advisors will discuss with the client the available remedial financial products available and help them in getting out of the financial pit.

As a lesson learned, I am now personally very careful whenever I need to avail of any credit. This is because constant and thoughtless borrowing might lead to unsecured debt because we may never know what the future holds.

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