Posted on: 12 August 2019
Debt is never something you want to be tied down to. It hangs around your neck like an anchor, pulling you down into the depths of despair. Try as hard as you might, you may not be able to get out of debt and resolve your debt issues the way you want. This is because the interest on most debts is multiplying faster than you can repay what you owe. There are three ways you can resolve your crushing debt issues. Being smart about which one you choose can make all the difference in the quality of your life and your financial affairs going forward.
Debt Consolidation Loan
A debt consolidation loan can help. The tricky part is getting approved for the loan when your credit may already be less than favorable. Still, if you can get the loan to pay off all of your debts such that you have just housing, utilities, and/or school loan payments to make with the consolidation loan payment every month, you may find that your debt load is a lot lighter and a lot easier to manage. The interest rate on this type of loan is usually far less than that on any of your credit cards as well.
Debt Settlement Help
More than just a consolidation loan, this kind of debt settlement help reduces or eliminates your interest on all credit and applicable loans you have (with the exception of school loans, which cannot be included). An agent with a debt settlement agency will talk to every one of your creditors to reduce the accumulated interest, eliminate late fees and over-the-limit fees, and reduce or eliminate the interest rate on your balances. The result is that you have far less to repay, you can get out of debt faster, and your credit will improve because you are trying to settle up with your creditors rather than filing for bankruptcy.
When you file for bankruptcy, your debts are cleared from your plate. You get a fresh start, but a bankruptcy can really damage your credit. A bankruptcy can stay on your credit files for up to ten years, too, which can impact your ability to get a car loan or a mortgage or get an apartment. Additionally, some of your creditors may not be so willing to allow the cancellation of your debts with them — in which case, you may have to find some way to settle your debts with those creditors.Share