If you’re a debtor, you must be looking for some ways in which you can repay your debt burden. Are you overburdened with a huge amount of unsecured debt burden and are your accounts being turned down to collection agencies? If answered yes, you must be looking for an option of credit consolidation. But have you considered all the other options that can help you get out of debt? Well, there are many ways in which you can get rid of your debt and avoid filing a bankruptcy. Have a look at some such ideas.
Credit counseling: You can rush to a credit counseling agency and get help from them. A non-profit credit counselor will probably help you with your personal finances and he will assess your personal finances to determine where you stand. You may think the benefits that you may reap by getting help from a credit counseling agency. The credit counselor will teach you how to handle a budget and repay your debts without causing a stress on your budget.
You may also get help of a DMP or a debt management program and reduce the monthly payments on the multiple accounts. You just have to write a single check to the credit counseling agency and all your payments will be disbursed off to your creditors in due course of time. Therefore you can save a lump sum amount of money every month as you can easily make low monthly payments in the near future.
Debt settlement plan
It is most often said that a debtor must go for a debt settlement plan when he has no other option to pay off his debts. However, the actual fact is that if you think you cannot make the entire principal balance that you owe on your credit cards, you can certainly go for this option. The debt consultant will negotiate with your creditors and lower the principal amount on the accounts. Thus, if you can keep making timely payments to the company, you can become debt free within a short span of time. This option has a bad impact on your credit score and therefore you must try your best to negotiate properly so that the creditors report it accordingly to the credit bureaus.
Thus, if you’re up to your eyeballs in credit card debt, you can also seek help of the 3 above mentioned options apart from credit consolidation. Just make sure you’re working with an authentic company that is registered with the BBB.