Talking about debts, I believe more people are getting into debt at a younger age. People have blamed the evils of credit cards but there are many other reasons why some people get into debt, like taking out secured loans or unsecured loans.

Whatever it is, if one is in debt, he should take control of his finances and start doing something to right the situation. I read the article Debt consolidation ‘an option for those with money problems’ on the website of Magic Loans and I have to agree with the writer.

I have seen many people who are in debt and they think it is only a small issue. They take out a loan elsewhere to cover their existing loans. Sometimes even taking a loan against their credit card or taking out a payday loan with high interest rate.

If a person in debt is aware of his financial problems, he should calculate his options and one of the viable options is debt consolidation. How long can a person juggle his borrowings and prevent interest incurred from snowballing? Sooner or later the debt will get too huge to handle.

It is not wrong to be in debt but it is if we are not proactive about it and end up not doing anything positive to reverse the situation.

A few posts back, I wrote about the financial hardship of my family. The lucky thing was that no matter how deeply we were in debt, my parents managed to avoid bankruptcy. I do have a couple of distant relatives who were declared bankrupt and it is quite a hassle for them after that because they were not supposed to travel, own properties and they had their passport revoked.

A friend of mine was a bankrupt too but his wife is a smart lady. Although they did not have the help of professional debt solutions, his wife set up a hair salon at home and luckily for them, business was brisk that she managed to use her profit to bail out her husband from bankruptcy, over the years.

Once the husband was a free man, financially, he managed to secure a good job and has been working ever since. When one is a bankrupt, nobody will employ him. Even a former bankrupt will have problem looking for a job. Meanwhile, the wife expanded her hair salon business and now, owns a salon in a posh area in the city.

Although it may seem like the end of the road when we are so bogged down with debts, there are solutions. It is just that sometimes we are so obsessed with the figure amount that we do not see the solutions even if they are right smacked in front of our eyes.

But one thing is clear. To get rid of debts, we just have to earn and earn.