How to Resolve Gambling Debt

First and foremost, know this—

Nobody ever bet their way out of gambling debt. You will NEVER win enough to do so, because the moment you win, you’ll bet again. What’s more, gambling debt tends to go far beyond what’s owed to casinos; it also encompasses credit card debt, loans (both private and institutional) and sometimes even home equity.

The good news is all of this can be dealt with.

Here’s how to resolve gambling debt.

Stop Gambling

Yes, we know this is easier said than done because gambling at this level tends to stem from addiction in much the same fashion as overindulging in food or alcohol. There really can be too much of a good thing. And, even when that thing gives you intense pleasure, its downside can be equally devastating.

This is why you must seek professional help. You must get counseling if you’re ever going to break the cycle. According to the National Council on Problem Gambling, somewhere between four and six million U.S. adults have gambling issues. Further, another two million meet the criteria for gambling disorders.

Gamblers Anonymous has had great success helping people manage the condition. Given it’s recognized as a psychological issue, your health insurance might cover the cost of rehabilitation. Find out if this is a possibility for you.

Turn Off the Tap

It’s hard to gamble without access to cash. This is one of the rare instances when financial advisors recommend closing credit card accounts altogether. You should also request a freeze on your credit history to inhibit your ability to apply for new credit accounts.

Implement a Repayment Strategy

Create a list detailing everyone you owe and the amounts they’re due. Include credit cards, bank loans, friends and family, as well as gaming establishments, bookies and loan sharks so you can develop a restitution plan.

Given the former pair tends to reject payment plans and impose high rates of interest, these should be your first priority.  If you’re still on good terms with family and friends, show them you’ve sought professional help and ask for their financial assistance one last time.

If you have yet to have done so, you could also sell off furniture, cars, electronics, watches and jewelry — anything you have that can be liquidated quickly for a reasonably significant amount. Getting a second job is a good move too. This has a couple of benefits. In addition to helping you get the money you need, it’ll eat up your free time so you’ll be less likely to gamble.

Credit card companies might be open to a settlement deal for less than the total amount you owe in exchange for payment in full of the agreed-upon amount. This can be a powerful option when you’re considering how to pay off debt. A company like Freedom Debt Relief can often provide useful assistance in negotiating and settling unsecured debts.

If All Else Fails…

Filing for bankruptcy protection can be a legitimate means of eradicating certain forms of gambling debt. Credit cards, unsecured personal loans and casino debt can all be discharged. However, if you’ve taken a home equity loan, or used any other property to secure the loan, it will be seized.

Now, with that said, if a creditor can prove you borrowed money with no intention of repaying it, or a plan to file bankruptcy to avoid the obligation, your petition for protection can be denied. You can also be charged with fraud.

When it comes to how to resolve gambling debt, there are a number of options available to you. However, you have to choose carefully and above all — be willing and ready to stop gambling altogether.