In continuing our debt management segment there is another trap you want to avoid. You always want to be sure that the plans you have set for yourself are actually something that will benefit you. Today we will be covering the topic of “robbing Peter to pay Paul.”
Until I got into this industry I honestly never heard this saying before, and always thought, “Man, poor Peter!” Poor Peter is correct. This saying basically explains a situation where you are taking funds from one area and using them to pay another. Now in terms of cutting back and saving is fine. So it’s perfectly fine to cut out those trips to your favorite coffee shop. Now when it comes to using your funds that were to pay lets say your credit cards to now pay for your rent is another story. You've now placed yourself in a situation where you are still going to be behind one way or another. I've heard stories of clients falling behind on medical or utility bills just to be sure their home or car payment was on time. Consequences ranged from late payments to collections reflecting on their credit report which placed them in a predicament when they later needed credit.
Can’t seem to make ends meet? Contact your lenders and see if they have any options for temporary relief. A majority of lenders would much rather hear from you now to make some type of arrangement than have to end up charging off your debt. Not to mention this will also save you the headache of having to deal with any further collection companies.
MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.
*The information in this article has been provided strictly for educational purposes.
