Bankruptcy

Don’t Leave Your Options On the Table

If you’re in debt, then it does without saying that you’re probably pretty stressed out. You’re probably wondering what you can possibly do to get out of the situation that you’re in. You might even be worried about not being able to handle everything on your plate, and that’s okay. You don’t have to handle everything on your plate at once. You just need to prioritize and then attack the problem in pieces. Everything can be overcome with time and patience, and your debt problems are no exception.

When you’re in debt, you might not want to actually look at your debt by the numbers, but that’s really what you have to do. It can even be a pretty emotional process as you have to dig through all of your bills, everything that you owe someone else. But it’s necessary in order to really know not only how much you owe, but who you owe it to. Sometimes when the debts pile up and switch hands through debt purchases, it can be even more stressful. We start thinking that there’s really no way that we could ever get out of debt, but that’s just negative self talk that’s going to push you further away from your goal.

If you need a word, here it is: options. You need to just stop and look at your main options.

If you don’t have a lot of debt, we can tell you that bankruptcy really isn’t your best option. For one, the hit to your credit is so long lasting that you won’t be able to really achieve any of the goals that you have on the table, like buying a house or even a new car. Unless your debt problems are caused by medical bills, we definitely suggest avoiding bankruptcy if you can really help it.

That leaves debt settlement and debt consolidation. These are good options for people that have small to moderate amounts of debt that want to clear it up as fast as possible. You don’t have to be super rich to take this option either — as long as you have regular income you are going to be able to take care of your debt over time and get it paid off.

Does that mean that you need to call up Chase Bank and start making demands? Definitely not. For one, the credit card companies really have no incentive to make a deal with you if you’re just on your own. IF you are really thinking about debt settlement or even just debt consolidation, you really do need to get an advocate on your side. You need someone that ahs done the negotiation process a thousand times and thus are not afraid to get dirty if that’s what it takes to win the negotiation round. You need someone that isn’t afraid to ask tough questions or to remain firm. You shouldn’t beat yourself up if you’re really not as good of a negotiator as the pros. Remember that you don’t work with the credit card companies day in and day out, but the best debt consolidation experts do all of the time.

Debt consolidation brings a lower interest rate, which means that you will have a lower monthly payment. This means that you will have better chances of actually paying your debts on time. This in turn improves your credit score; because you’re actually paying your accounts rather than just assuming that you have no way of actually taking care of the problem. That’s a hard pill to swallow and we suggest that you try to avoid it as much as possible — getting help with your debt is much better than just assuming that you have no recourse at all.

In order to pursue debt consolidation, you are going to have to let someone else look at all of your debts in order to come up with a battle plan. It’s very important that you’re as honest as possible. If you hide debts or mess with the numbers, you will essentially be giving your debt specialist an uphill battle when it comes to getting your needs handled properly. Anything that the credit card companies can use to stall, they definitely will. There’s no reason that you should have to put up with that, so make sure that you give the right information the first time.

Is it a tough road to travel? Definitely — debt puts a lot of stress on you and your family but you don’t have to walk down the road to a debt-free life on your own — why not pursue professional debt consolidation today?

Effective Ways to Reduce Your Debt

A huge number of people today are having a hard time stretching their income just to keep up with their daily needs.  The solution that most people have found to be helpful is the borrowing of money.  Obtaining different loans and the use of credit cards have already become a common practice for a lot of people, and many are really thankful for their existence.  However, there are also individuals who got used to obtaining credit only to find out in the end that they anymore can’t get out of it.  This article will discuss a few of the effective ways on how you can reduce or eliminate your debts.

1.    Debt Management

This type of debt relief program can help reduce your debts tremendously through the efforts of a debt management company.  Such a company will come up with a repayment plan for all your debts and will submit them to your creditors.  Some are also successful in trying to waive off interests and charges.  With debt management, you will only have to pay a single account on a monthly basis, not directly to your creditors, but to the debt management company.  It assumes the responsibility of distributing your payments to your different creditors based on the amount agreed upon.

2.    Debt Consolidation

When you avail of debt consolidation from a debt consolidation provider that offers low rates, this will make a big difference on your current financial standing.  Rather than obtaining loans every now and then in order for you to pay your monthly obligations, why not take the option of taking a single loan that will allow you to repay all your outstanding debts?  With this, you’ll only have to worry about paying one credit account every month with a much lower interest.  This will also relieve you from stress and that you already can possibly save money.  Another benefit of debt consolidation is that this will help improve you credit rating provided that you’ll be able to settle your monthly dues on time.

3.    Individual Voluntary Arrangement

An Individual Voluntary Arrangement or IVA works almost similarly to a debt management.  The only difference is that in an IVA, there is a legal agreement between you and your creditors.  Your creditors must agree with your plan for this to take effect.  The IVA can cut down your debts up to 70%, which can really help you recover from your severe indebtedness.  This is type of debt solution is realized with the help of an IP or an Insolvency Practitioner.

4.    Bankruptcy

This is the very last debt solution that you should be considering.  This may solve your debt problem, but you will have to bear with its consequences for a long time, such as a negative credit score.

Winding Your Way Through the World of Bankruptcy, Debt Consolidation, and Debt Collectors – Oh My!

Getting out of debt can be a scary process. If you don’t have all the right information trying to go get the information can be a pretty stressful experience. The last thing that you want to do is give up before the hunt for quality information has begun. So we wanted to provide a little action plan for you to sink your teeth into.

Bankruptcy Isn’t Always Needed

First and foremost, bankruptcy is something that you don’t have to pursue. Yes, it’s something that’s designed for you to take when you run out of other options, but that doesn’t mean that it’s the only option that will ever matter in your life.

You are better off making sure that you actually think about other roads to getting what you want, like debt consolidation.

Think Debt Consolidation

If you still have a steady income and your debts aren’t too high then debt consolidation is actually a nicer approach than bankruptcy. Debt consolidation gives you a little more control, but you don’t have as many protections.

If you break your debt consolidation plan, you might have to go right back to those high interest payments that you were doing before the plan was in place.

That can be a really big strain on your finances, and that becomes a problem.

Debt Collection Agencies

Debt collectors can be a strain on anyone — especially when they seem to call at all hours of the day and even through the evening. Once there was a time where no debt collection agency would dare try to call you while you’re trying to put food on the table for your family.

We don’t live in those times anymore.

You have to be aware of what’s around you when it comes to your finances. This might mean pulling your credit report and actually seeing where you stand.

In addition, you need to make sure that you have a budget in place. These things can take time to build, because you don’t want to try to go with a strict budget. That’s only going to make you more stressed than anything else. If you wait till the last minute to put together your financial blueprint, things might not go the way you expect.

Therefore, it’s better to relax and take things in stride.

Yes, you’re going to have to probably make a lot of tough decisions, but nobody ever said that you have to make them quickly and to the point where you get overwhelmed. That’s just a recipe for disaster as you decide not to do anything at all.

Take care of yourselves out there — you only have one life, so why let debt control it?

Good luck!