Debt Relief Options For Those Who Just Can’t Get a Grip on Their Finances
Okay, you know and have admitted to yourself that it is time to do something about all of this debt you have accrued, and that paying those minimum payments every month are getting you nowhere. You have tried budgeting, and even working a part-time job, but just can’t seem to make the money go where it needs to. You get those statements every month, and really are unable to tell any differences in your balances, even though you have been working harder than ever to pay them off. If this sounds like something you are dealing with, it may be time to consider other debt relief options.
There are four main types of debt relief options, and you will need to assess your own situation to decide which will work the best for you. You can choose from: debt consolidation, credit counseling, selling off any valuables you may have, otherwise known as liquidating your assets, and filing bankruptcy.
Debt consolidation involves getting a bank loan, to payoff the lump sum of your debt, so that you are only left with one payment, and one monthly due date to meet. This quite often can save you a lot of money in interest and fees, and can oftentimes put you on the fast track to getting out of debt. You should be able to see your balance go down with every payment you make, and this could well be the motivation you need to your financial situation back on the right track. You may have to list some of your assets as collateral, and your credit rating will be a factor in determining the terms of your loan, but for many, this is a great solution to solving their debt problems, especially for those who aren’t great money-managers.
Credit counseling has also been known to help many people get back on track, and payoff their debt faster. You still owe each individual creditor, and you still have monthly payments to make to each, but instead of you sending that payment in every month, your credit counseling agency will take care of it for you. They will look at all of your unsecured debt, and work out arrangements with those creditors to lower your interest rate, stop late and over the limit fees, which will allow you to pay your balance down at a much faster rate. It can take some time to get a credit counseling plan setup, and if you miss a payment, you could lose the program altogether, meaning that your interest will again be raised, and your balances will start to rise again. You need to be certain you can handle the minimum monthly payment amount due the counseling agency each month, before accepting a credit counseling agreement.
If you have any kind of property, or assets that might be of value to someone else, you could hold an auction, or sale, and then put the proceeds toward your debt, starting with the highest balance first. In most cases, you probably won’t get enough to completely payoff all of your debt, but it can help to clear up defaults, and put your accounts into a current status.
If all else fails, it may be time to talk with a bankruptcy attorney, but this should be used as a last resort. It is much harder to be approved by a bankruptcy court than it once was, and you will probably lose most of your assets, unless you file a Chapter 13.
The path to debt relief is not always easy, and it will take some time to reach your goal, financial freedom. But in the end, with these options to choose from, you should know that even you, can be debt-free!
If you would like more in-depth information on getting real relief from pressing debts, you will find much more free information by visiting our debt resource site.
Add comment March 13th, 2008
