Till Debt Do Us Part by Robin Sharp boils down to this: what are our obligations, and when we are legally obligated to fulfill them? We are all responsible for our actions. What are those obligations? To list some: marriage, children, mortgage, auto loans, credit cards, and so on. The book’s title suggests that there is a way out of this rut, but not a quick one. No, this book is designed to help you recognize the areas in which you need to focus on, and then plan how to work within those areas to eliminate debt and increase wealth.
At first blush, this book’s focus on debt seems harsh. After all, if one of your own children was going through a financial crisis, it could very well mean that you are in the same boat, and that you, as a parent, may be causing unnecessary stress. But this is not the case at all. In fact, until you understand the root cause of your own debt problems, you cannot really understand how you can help others.
So, what is this “root cause” that Robin Sharp refers to? It is this: many people make impulse purchases, mainly due to lack of proper planning, money management, and awareness that such actions could compound over time, leading to large debts that will be difficult to repay in a short period of time. If you were to take on a simple consumer proposal for example, you would find that the majority of consumers (over 80%) who purchase goods or services on credit would prefer to pay their entire bill off every month. However, many of these consumers could also be stretching their budget to the max by spending beyond their means and incurring large debts, while they struggle to pay back their creditors.
So, if you were to adopt a consumer proposal for example, which asks you to make only the minimum payment requirement every month on your unsecured debt, you would probably be able to pay back your creditors within two years. Is it likely that you could try and do this with all of your debts? Absolutely not. If you were to stretch out your repayment term by an extra year, that will probably push your debt to the limit, and you would be left with absolutely no room to negotiate with your creditors.
So, why do debtors choose to go with a debt consolidation company to help them get out of debt? Many companies are actually set up to make profits from other debtors. As such, they might offer you lower payments than you would get if you paid on your own, or they might even require you to extend the term of your debt, in order to obtain a lump sum payment from you. However, do not allow yourself to be tricked into signing up for a debt consolidation plan that might not be right for you. It is very important to look carefully at each of the debt consolidation companies before you commit yourself to one.
As you are already aware, it is very easy to accumulate debts over time, especially if you live on your own. This is because your lifestyle is too lavish, you spend way too much money, and you don’t earn enough at the job to keep up with inflation. In such a scenario, you will owe more money on your existing debts than you can ever repay, and if you do not stop spending, the debts will grow like an avalanche. In other words, if you don’t do something about your existing debts, sooner or later, you will end up with so much debt that you won’t be able to manage it without having to file for bankruptcy.
However, you can avoid bankruptcy by going in for a debt consolidation company. Debt consolidation loans allow you to take out a single loan to pay off all of your existing debt, with a single low interest rate. You just have to make one repayment to the debt consolidation company, and the company will distribute the money to your creditors on your behalf. The good news is that the company is usually able to get a better rate of interest than you would get otherwise. The only bad news is that you will have to pay the entire debt consolidation company once you’ve paid off your existing debts.
However, there are various debt consolidation services available online, and one of the best services available is debt settlement. Settlement companies negotiate with your creditors on your behalf and convince them to reduce your debt in exchange for upfront fees. Once this is done, the debt consolidation company will distribute the money to your creditors in easy installments. This is the best way to go about debt consolidation, and if you use a service like this, you can be debt free by the time you want.