Debts can reduce your options in life. They can ruin your happiness and affect your relationships. But there are some great ways to manage your debts and renovate your damaged financial house. Take out some time from your busy schedule and consider these options to choose the best one.
It is the process of paying less than what you owe on unsecured debts through negotiation with one or multiple creditors. It is one of the quickest ways to pay back your creditors and start the journey to debt free life soon. Debt Settlement works best when:
- You're aware of the pros and cons of this program
- You've compared this program with others
- You know how this program will affect your finances
Debt consolidation is the process of combining several kinds of unsecured debts such as credit cards, utility bills, medical bills, etc. into a single and affordable monthly payment plan. This debt relief program results in lower interest rates, small monthly payments, and less debt collection calls. It works best when you're bad with money and can't get out of debt on your existing income.
Credit card help
Are you swamped with credit card bills and spending restless nights? If you're weighed down by huge outstanding balances, then you may get some relief by consolidating your credit cards in 3 ways:
- Enroll in a consolidation program and pay less than your current payments
- Roll your debts into a card with a super low-interest rate
- Take out a secured or unsecured consolidation loan and pay down your debts
Debt management plan
It is a systematic and personalized plan to repay 100% of your unsecured debt. In this plan, you make single monthly payments to a debt management company, and they disburse the amount amongst your creditors.
The benefits of a debt management plan are:
- Less interest rates and stress
- Single monthly payments
- No need to file bankruptcy
Medical bill consolidation
Tired of receiving huge medical bills and thinking about the ways to get rid of them? Enroll into a bill consolidation program to handle unexpected expenses and manage your budget simultaneously. The best part of medical bill consolidation is that you can manage your health care expenditure through affordable monthly payments. Therefore, you can look after your health and wealth with utmost care.
Completely puzzled about how to get out of spiraling debt? Worried about how to appease your angry creditors? Sometimes, your brain stops working when you face new trouble every day. You need right advice and suggestion at this time, and you can get it from professional debt counselors.
Student loan consolidation
When it is beyond your means to send monthly payments to lenders, then you may benefit from student loan consolidation. It is a process wherein you borrow a debt consolidation loan (preferably bigger than your current one) and pay off your debt.
Before you take out a debt consolidation loan, it is important to know about its benefits and drawbacks.
Payday loan consolidation help
This option works best when you're unable to pay high-interest rates on legal payday loans. You can restructure your payment plan as per your affordability and stop paying high fees. Some benefits of the payday loan consolidation program are:
- You can get rid of payday loan debts
- You can obtain a low monthly payment plan
- You can save more of your paycheck
This is best reserved for the individuals without any option. It is a difficult journey with lots of hurdles. Therefore, it should be used as the last resort. Bankruptcy is best suited for the people who can't take debt load anymore. It helps debtors to pay back creditors with the court's help. The 2 main types of bankruptcy are:
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy