In today’s Economy, more and more people have considered the option to file bankruptcy.
Are tired of unwanted creditors constantly calling your home and harassing you? Before resorting to filing bankruptcy, there is an alternative solution.
You can first begin by organizing all your unwanted debt. Consider everything from overdue utility bills, credit card accounts, past due revolving store accounts to medical bills. Organizing your debt like this, will make it easier to maintain and update payment and contact information for all of your current outstanding creditors.
This is something that you can actually attempt to do yourself, but there are financial services available that can assist you. These companies normally specialize in debt consolidation, and credit repair solutions.
After you have made a list of all your creditors, and the amount of debt owed to each, you should now consider your options. There are two ways that you can actually do this. You can contact creditors on your own, or you can pay a debt consolidation company that specializes in helping people repair damaged credit. At the top of this list you should have all the companies listed that are non-for-profit.
You are probably wondering why you should pay someone to assist you with your creditors, when you could actually use that money to make a payment on an overdue debt. These companies specialize in this kind of work on a daily basic, and know the ins and outs of the business.
What you need to understand before contacting any of your creditors that there is a very good chance that your attempt to settle unwanted debt could be very stressful. Not all agents will be considerate, or willing to agree on a reasonable settlement. This is one reason why people choose Debt Consolidation Companies. If you think that you can handle this situation on your own, there are a few key points you might want to consider before calling a creditor and trying to come to a mutual agreement.
The first thing you might want to consider is a payoff amount that you think is affordable for you. Be firm! There is a good chance when you first lay the offer on the line the agent is going to tell you that there is no way their company could accept an offer like that. Be reasonable with your offer. Normally you can try offering to pay 1/2 the value of the loan or credit card. If the answer is still no, ask for someone who can make an executive decision.
This is not something that is processed or accomplished overnight, but there is a very good chance that once you begin calling creditors and letting them know this is basically your final attempt to pay your debt before filing bankruptcy. There is a very good chance that they will willingly work with you. Continue this process with each of your creditors and you will have made a major step towards recovering from your debt.