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Debt Help
The type of assistance you require will depend mostly on the type of accounts you
owe and your specific situation. For credit card debt and other unsecured bills
like collection accounts, personal loans, and hospital bills, you can choose from
the following options:
Debt Consolidation Programs
Also known as credit counseling, these are payment plans typically offered by non-profit
agencies that aim to lower your interest rates and have you debt free in four to
six years. As an initial first step, your counselor will do a budget analysis and
determine whether your can your debts back yourself or if a debt management plan
(DMP) is more appropriate for your situation. Simply fill out a form now for a free
consultation!
Debt Relief Companies
Another option that is available for people is debt settlement. These services aim
to settle your debts for less than you owe and when successfully completed, it is
possible to get out of debt in as little as 12 to 36 months. The savings potential
in debt settlement is more substantial than credit counseling, but there are other
risks associated with this option, such as a likely credit score hit and the potential
that one or more of your accounts won’t settle. To speak with someone more about
this option, submit a form now! Get absolutely free and useful advice today!
Filing Bankruptcy
A last resort for many consumers, bankruptcy is certainly an option. Keep in my
mind, however, that Chapter 7 bankruptcy stays on your credit for at least 10 years,
and although Chapter 13 only stays on your credit for seven years, you still have
to pay at least part of the debt back to your creditors. The advantage with filing
bankruptcy of course is that you can eliminate your debt completely and for less
than your other options for debt help.
Debt Consolidation Loans
With this option, you take out a loan, presumably at a lesser interest rate, to
pay off all your other bills. Usually consolidation loans are taken out against
some piece of property, most often your home, through a mortgage refinance or home
equity loan, but there are unsecured consolidation loans, although they typically
come with a higher interest rate.
Getting out of debt on your own involves preparing a budget, setting a goal or timeline
for when you would like to be debt free, and then making the necessary sacrifices
to ensure it actually happens. For those who have manageable debt loads, but just
need to be better disciplined about paying off their credit cards, doing it yourself
is always the advisable solution.