Debt Problems - How to resolve your debt and avoid creditor calls
If you're struggling with your bill payments and ignoring creditor calls, it's time you stop neglecting the problem and find out ways to tackle your bills. If you find it hard to do it on your own, seek professional help with debt problems so as to pay off your debts and restore financial stability.
How to get help with debt problems
Not all individuals have the same type of debt and there isn't a single solution for solving debt problems. If you're looking to get help with debt problems, you need to understand which option is best for the kind of bills you have. Below is a list of debts along with the options to help you get out of them.
- Credit cards: If you're having problems with credit card (cc) or store card bills due to rising interest rates or mounting cc bills, you may try out credit card consolidation or bill consolidation. By doing so, you can consolidate multiple cc bills into a single monthly payment with reduced interest costs.
However, if you cannot make the minimum payment on your credit cards, then it's better to go for a settlement program. Such a program offers help with debt problems by reducing your outstanding balance.
- Medical bills: If you need help with medical bills, debt negotiation or consolidation might be the best option for you. A debt relief company can negotiate with the hospital or doctor to reduce your bills.
- Student loans: Student loan debt consolidation is the best way out of student loan problems. Here, you can take out a single personal loan in order to repay the student loans and then you pay off the consolidation loan in lower monthly repayments. It's better to consolidate any Federal student loan, like a Stafford or Perkins loan, through the government's consolidation loan than to consolidate them into a private loan. This helps you keep all of the Federal loan benefits.
- Pdls and personal loans: You can consolidate payday loans and other unsecured personal loans if you can't make multiple payments. A settlement program offers help with debt problems on personal loans, but it is more suitable for those who'd like to reduce the total amount they owe.
- Utility bills: If you have past due utility bills, it's better to consolidate them when you cannot afford the monthly payments.
- Auto loans (repossessed): An auto loan is a secured loan, but after the vehicle is repossessed, it becomes an unsecured loan. Like most unsecured loans, auto loans can also be settled for less once the car has been repossessed.
- Tax debt: There are few firms that can negotiate with the IRS and help you consolidate your tax bills. The best way to get rid of IRS tax debt problems is to contact a tax professional and get help settling your debt with the IRS.
- Multiple bills: When you have multiple bills that you cannot consolidate or settle together, it's better to go for credit counseling
In credit counseling, a credit counselor offers debt problem advice after reviewing your financial situation. Apart from giving debt problem advice, the counselor assists you in planning a budget so that you can control your spending and invest more towards bill payments. If you owe a lot of money, the credit counselor may ask you to follow a debt management plan (DMP).
Through a DMP, you get help with debt problems as the credit counselor negotiates with your creditors in order to lower interest rates. Your creditors may also reduce or eliminate late payment fees and over-the-limit charges (for cc bills).
There are different ways of solving debt problems. You need to identify the right solution to your debt problems with your own financial situation in mind. Depending on the type of bill and how much you owe, you'll be able to find the best option to pay off your bills and get your finances back on track.^Top