Personal Debt And The Pending Economic Collapse

Author: DRAdvocatesIf you’ve paid any attention to the American economy over the past several years, you’ve probably quit paying attention to the media pundits a long time ago. It’s become clear that — contrary to what we hear on a daily basis — unemployment is not going down, spending is not going up, and the worst of the recession is not already behind us.

If anything, it now appears that total economic meltdown may be inevitable. Some of us may be more optimistic than others, but regardless of your personal opinion on the matter, all would agree that it’s a good idea to be prepared for what may or may not lie ahead.

When it comes to preparing for an economic meltdown on a global scale, one of the most common subjects of interest is that of personal debt. If the economy collapses, what happens to your debt; do you ever need to pay it back; what will happen if you don’t; should you even bother seeking debt relief help? Let’s address some of these questions so you can best plan for your financial future.

First of all, it’s never wise to rack up debt in anticipation of not having to pay it back. No one knows what will happen in the economy, or how long it will be before the collapse (if it does occur). In the event that the economy completely recovers, you won’t personally be enjoying it much if your credit score is utterly destroyed.

With that being said, let’s talk about what happens to your debt if the economy crumbles beyond recovery. This is a difficult subject to tackle for a variety of reasons. For one, the fate of your debt — and all debt in general — rests on a multitude of variables. This includes the cause of the collapse, which actions the government takes to remedy the collapse, how effective these measures are, and whether it results in the destruction of the state.

Discussing every possible outcome on your personal debt would be too much for the scope of this one article, so we won’t get into that at this time. What’s pertinent, however, is how you plan. The first thing that you should know is this: if the economy takes a nosedive, and if you have debt, someone will try and collect from you. In this situation, it’s not having debt that is a problem — it’s the type of debt.

If it’s an economic apocalypse, no one’s going to care what your credit rating is. Chances are, you’ll never be financing anything again in your lifetime anyway. If all your debt is unsecured, then you don’t have anything to worry about, because your creditors will have no claim to repossess your most valuable possessions, i.e., your house. On the other hand, if you have loads of secured debt, i.e., a mortgage, you may be in trouble. After all, it’s not going to be pleasant surviving an economic wasteland without a home.

The best way to prepare for the future is by paying all your debts. However, you need to be certain that you prioritize carefully. Pay your mortgage payment before your Macy’s Credit Card; make your car payment before your old medical bills. The trick is to put yourself in a manageable situation whether the economy thrives — or dives.

If you’re currently in a lot of debt, it would be prudent to at least start considering your various debt relief options. The fact is, it’s impossible to forecast if and when the economy will come crashing down; you should never put all your eggs in one basket. In summary, you do not want to count on an economic collapse to wipe out your debt. A better approach would be to find a sensible consumer debt relief solution that will best prepare you for any future economic landscape.

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