Learn to face your fears. Read at your own risk.
What’s scary about Halloween? How much we’re willing to pay for one day of the year. Americans will spend a record $12.2 billion this Halloween.
All the ghouls, goblins, ghosts and spooky creatures make October the time for fears and frights. But some horrors follow us year-round – like terrifying financial nightmares that will make you sleep with one eye open.
Is there a financial boogeyman haunting you? Here are 10 financial horrors, and how to conquer them…
1. Running from a boulder of student loan debt
What it means: You’re graduating from college and face a massive student loan tab you have to pay back.
No wonder you’re worried:
44 million student loan borrowers who owe a collective $1.5 trillion
The average student loan debt per borrower = $39,400
How to survive:
- Consolidate federal student loan debt.
- Settle with private lenders.
Learn more at Student Loan Debt Consolidation.
2. Zombie debt collectors
What it means: Your debts are like the living dead. They keep coming back no matter what you do.
No wonder you’re worried:
Debt collection is CFPB’s No. 1 complaint
30 million Americans have at least one debt in collections
Average amount in collection = $1,000
How to survive:
- Find the right debt relief option – consolidation, settlement, etc.
- Stop collection calls and file suit for harassment.
Learn more at Fair Debt Collection Practices Act.
3. Falling off a corporate high-rise
What it means: You’re losing a battle with credit card debt and you feel like your financial life is in jeopardy.
No wonder you’re worried:
Average balance on credit cards = $6,569
Average number of credit cards: 4
Average interest rate available: 22.21 percent
How to survive:
- Take out a personal debt consolidation loan.
- Pay off your debt at a much lower interest rate.
4. Teeth fall out during a loan application
What it means: Your credit score isn’t good enough so you’ll be judged and rejected by your creditors.
No wonder you’re worried:
Average FICO score = 695 (700 or better is good)
1 in 5 credit reports contain a damaging error
How to survive:
- Correct your credit report to ensure it is error-free.
- Use credit monitoring as you build your credit score.
Learn more at Get the Credit Score You’ve Always Wanted.
5. Armageddon in April
What it means: You’re worried about owing money to the IRS and being unable to pay your income taxes.
No wonder you’re worried:
An extension doesn’t stop interest charges
Net tax gap for the IRS = $458 billion – $52 billion in late payments
How to survive:
- Find a state licensed tax attorney.
- Explore options for tax debt relief – OIC, CNC, installment agreement.
Learn more at Finding the Best Tax Debt Relief Solution.
6. Trapped under a paper mountain
What it means: You have too many debts, too many bills and no way to escape – you’re suffocating.
No wonder you’re worried:
U.S. consumers owe $16 trillion, in total
399,000 Americans went bankrupt last year alone
How to survive:
- Call a credit counselor to find solutions.
- If no path is open, declare bankruptcy – it’s not the end of the world!
7. Bleeding out from monetary paper cuts
What it means: You aren’t prepared for medical debt and even small issues are killing your budget.
No wonder you’re worried:
Medical debt is the No. 1 reason why Americans go bankrupt
Nearly 43 million Americans have medical debt
How to survive:
- Review your policies to identify coverage gaps.
- Create a budget that allocates savings for emergencies, like a trip to the ER.
8. You call the bank, but no one answers
What it means: You aren’t good enough to qualify for credit – you aren’t creditworthy, so you’re ignored.
No wonder you’re worried:
You’ll need at least a 580 credit score to qualify for an FHA loan with the lowest down payment (3.5 percent)
How to survive:
- Take strategic action to build your credit score.
- Use comprehensive credit restoration before loan applications.
9. Financial Horror No. 9: Partner leaves you for the landlord
What it means: You’re not ready to buy a home, so your significant other will find stability elsewhere.
No wonder you’re worried:
The median price for a home in the U.S. is now $428,700
You’ll need at least a 580 credit score or higher to get approved for a 3.5 percent loan
How to survive:
- Use debt consolidation to reduce debt-to-income (DTI) ratio.
- Budget your money to save for a higher down payment.
- Build your credit score with credit monitoring.
10. Financial Horror No. 10: Doppelganger takes over your life
What it means: You’re scared your information and data will be stolen and you’ll become a victim of ID theft.
No wonder you’re worried:
9 million people fall victim to identity theft every year, the FTC estimates
Financial losses for ID theft total roughly $17 billion
How to survive:
- Review your credit reports to identify potential fraud.
- Use credit monitoring to set up fraud alerts.
Learn more at How to Prevent Identity Theft.
Published by Debt.com, LLC
