[ad#Left-Align Content Ad]If you are struggling with debts, life can become extremely difficult for you. Falling in the trap of debt is like a vicious circle, you can’t come out of it. You will see that you have tried to save and restrained yourself from using your credit card, but however some emergency arises and you have no other option left but to use your credit card and you again fall in debt. In such cases you have to go for debt solutions that can extract you out of the vicious circle of debt. You have 4 debt solutions available to you other than bankruptcy to help you out. Let us take a look at each of these processes in details.
1. Credit counseling – A good debt option for you can be credit counseling if you are having troubles in sticking to your budget and your debt situation is out of control. You can approach a credit counseling agency for professional help on credit counseling. They will provide you with a negotiator who will assess your financial condition and have counseling sessions with you. You will be suggested ways in which you can have a proper budget and get yourself out of debt.
2. Debt consolidation – This is the best solution for you if you have multiple credit card debts. You can approach a professional debt consolidation company which will render you with professional help. You will be provided with a negotiator who will evaluate your debt situation and decide on a monthly payment you can afford. He will then negotiate with your creditors to reduce the interest rate on your outstanding debt so that you can afford to make the minimum monthly payments and get out of debt.
[ad#Left-Align Content Ad]3. Debt management plan (DMP) – Usually a debt management plan is provided by a credit counseling agency to individuals who have a severe debt situation and just credit counseling won’t help. In a debt management plan all your debts are considered along with your income and budget and the negotiator from the credit counseling agency would work with your creditors to lower your monthly payments.
4. Debt settlement – This debt solution should be opted only if you are delinquent on your debt. You can approach a debt settlement company which will provide you with a negotiator who will negotiate with your creditors to reduce your outstanding debts. Your debts can be reduced up to 40% to 60% depending upon the negotiation between your creditors and negotiator. Usually your creditors accept this if they think you might opt for bankruptcy in which case they might end up getting nothing.
The above debt solutions are for various debt situations. You can opt for any of them depending upon your debt situation.