If you are overwhelmed by debt, there are options you can take that will help you pay off what you owe without the stigma of filing for bankruptcy. We'll examine four ways you can get your debt under control and start working back on the road to financial recovery.
1. Contact your credit card companies. Ask each credit card company for help. They aren't likely to forgive you your loan, but they may be willing to reduce your interest rate. If your interest rate is currently 12% or more, ask if they would be willing to cut their rate in half. Why would they consider doing this? Well, creditors do not want you to default on your loan and they want their principle back. Sure, a nice fat interest charge would be ideal too, but if they sense you are ready to default on your loan, you can expect that a lower rate will be offered instead.
2. Consider a debt consolidation loan. You can pull all of your debt together into one account, preferably one featuring a fixed, low interest rate. You can use the proceeds from the loan to pay back your other creditors and then make monthly payments back to the loan consolidator.
3. Home refinancing. Refinancing your loan may be just the debt reduction help you need as the funds saved by you each month with lower mortgage payments could be used to pay off other debt. Caution: you are placing your home "at risk" if you opt for this choice.
4. Visit a credit counselor. There are credit counseling companies who help consumers by offering debt reduction plans to tackle debt. Essentially the way this works is that you will meet with an advisor and lay out a plan to repay your loans. The counselor will negotiate with lenders on your behalf for the lower rate which, in turn, will reduce your monthly payments as well as keep your credit rating intact. Credit counselors work for private companies as well as for government agencies or nonprofit firms. Be careful: a lot of what these people do you can do on your own. Read the fine print to make sure you understand any fees involved; make sure that your credit rating is not adversely affected too.
Don't despair if you are well over your head in debt. Recent changes in U.S. bankruptcy laws have made filing for personal bankruptcy a less attractive option for consumers. Still, if it is your only resort visit an attorney specializing in personal bankruptcy to learn what your options are. Do not be bullied by anyone to make a decision that you will regret later.
Matthew Keegan is the owner of a successful article writing, web design, and marketing business based in North Carolina, USA. He manages several sites including the Corporate Flight Attendant Community and the Aviation Employment Board. Please visit The Article Writer to review selections from his portfolio.
Last week, a security exploit at CardSystems Solutions, Inc, a... Read More
Does this Sound like You? There are 100 shopping Days... Read More
Consumers looking for a way out of debt may want... Read More
Too many debts? Having trouble paying your bills? Are you... Read More
In our world of dizzying change, nothing is more true... Read More
One of the easiest "things" that can happen in life... Read More
Are you wondering why choose a debt consolidation loan? If... Read More
Many different types of financial aid are available to you... Read More
One of the most common social diseases remains dormant for... Read More
With the popularity of plastic money in the present age,... Read More
The recently passed Bankruptcy Abuse and Consumer Protection Act was... Read More
Credit counseling is a valuable service for consumers who have... Read More
Credit card debt reduction is an important part of the... Read More
Credit that cannot be managed or is not being repaid... Read More
It is said that a pet tiger cub can become... Read More
If you are in debt, you have several options available... Read More
Overcoming the stigma of being in dept, grow in self-confidence... Read More
Americans are using credit cards more than at any time... Read More
Is there something out there called a bad credit credit... Read More
Deciding to file for bankruptcy is a decision that should... Read More
For many people the lure of easy credit has taken... Read More
Have you ever seen a commercial or an ad promising... Read More
Planning For Debt Elimination Without Surplus CashPreviously we looked at... Read More
Many of us find ourselves overwhelmed with bills, bills, bills.... Read More
Debt consolidation is frequently becoming a very familiar term used... Read More
Yes, Debt Cosolidation isn't a good idea and I'll tell... Read More
If you're looking for the best way to reduce the... Read More
When you are living paycheck to paycheck and it seems... Read More
Individual Voluntary Arrangement, IVA is an alternative to bankruptcy -... Read More
Bankruptcy - Having been legally declared financially insolvent. There are... Read More
Credit counseling companies come in all shapes and sizes. Whether... Read More
Debt consolidation loan services act as a third party intermediary... Read More
It happens to the majority of us, credit card debt... Read More
If you are overwhelmed by debt, there are options you... Read More
However far you are along the road of financial/debt problems,... Read More
First, make a list of your creditors (NOTE: you should... Read More
A Debt consolidation program starts with evaluating your financial situation.... Read More
Borrowing money against your credit cards has always been among... Read More
For millions of homeowners, refinancing is the perfect way to... Read More
If your debt is becoming difficult to get on top... Read More
A secured debt is a debt in which the creditor... Read More
Credit card debts, auto loans debts, secured loans debts, unsecured... Read More
Has anyone noticed how many loan companies now fill up... Read More
Last week, a security exploit at CardSystems Solutions, Inc, a... Read More
Debt Consolidation is a solution that solves your debts. Debt... Read More
For many people the lure of easy credit has taken... Read More
Stafford Loan ConsolidationA Stafford Loan, which can help to finance... Read More
The automobile has long been recognized as the classic American... Read More
Are debt settlement companies scams? It's a simple question so... Read More
Student loan consolidation is one of the most used methods... Read More
Debt consolidation is a popular topic these days. The average... Read More
Here is a useful guide to Debt Consolidation Loans. A... Read More
No-Cost Student Loan ConsolidationA no-cost student loan consolidation ? doesn't... Read More
You're not alone. Many people face a financial crisis some... Read More
Are you having a problem paying your bills? Are you... Read More
Bankruptcy - Having been legally declared financially insolvent. There are... Read More
If you've ever tried to get a debt consolidation loan... Read More
It is quiet easy to get into financial difficulty having... Read More
If you've ever been in a situation where you needed... Read More
It is a very common question that people pose to... Read More
Finding solutions to reducing your debt takes some thinking and... Read More
Have you ever seen a commercial or an ad promising... Read More
Problem debt is rampant throughout America. In addition to mortgages... Read More
The first thing to understand is that there is categorically... Read More
Are you wondering why choose a debt consolidation loan? If... Read More
Debt consolidation is often a last resort for people who... Read More
Debt Consolidation |