Debt | The Worst 4 Letter Word

by

 Debt. Many would call this the worst “four letter word” in English. It’s painful, it’s frustrating, it can build up gradually or suddenly show up out of nowhere. Most people accrue debt via the use of credit cards. However, debt can also be accrued by getting a loan for a house or a vehicle, or an emergency situation leading to large medical bills. The majority of people will accrue some form of debt in their lives, no matter how careful they are. The trick is how you deal with it. Debt doesn’t only take a toll on your bank account and your credit score, but also on a person emotionally and psychologically. It can be exhausting to work each day knowing your earnings are already spoken for. But help and solutions are available!

There are a number of options and strategies you can use to assist in getting out of debt. The top five most common ways include debt consolidation, debt management, debt settlement, bankruptcy and using do-it-yourself techniques. Each of these options has their pros and cons and it’s up to you and your personal situation to employ whatever strategy makes the most sense. Let’s get started!

 

Debt Consolidation

Credit Card Debt HelpDebt consolidation means that you take out a new loan in order to use that money to pay off all of your current debt, leaving you with only one monthly payment. The most significant benefit from debt consolidation is that you do not have to deal with your creditors individually. There is no negotiating, and it can allow you to get a smaller interest rate on the money you owe. It is important that you find a lender that you trust and that is going to give you a payment plan that works for you.

Debt consolidation can improve or further hurt your credit score depending on several different factors including if you made all payments on time. This can improve your credit if you’re diligent about making payments. It can have the adverse effect if you miss payments. Proceed with caution.

For More Information Debt Consolidation Click Here!

 

Debt Management

Debt management is a program, typically set up by a debt counselor, that will help you negotiate a new payment plan with the creditors you already owe. The debt counselor will review your finances and tailor a personalized plan for paying off your debt, while still allowing you some budget for day-to-day life. They are in charge of communicating with the creditors to help you get a lower payment, as well as a lower interest rate.

Debt management is great if you are having a hard time making your monthly payments and are looking for reductions. The key point is you have to make sure you stick with the plan. You need to keep track of all of the payments made and ensure they are paid on time. Lapsing on this can put your plan as well as your financial future at risk.

For More Information on Debt Management Click Here!

 

Debt Settlement

Debt settlement is when you tell your creditors that you cannot pay them the full amount that you owe them, but that you can pay a portion of the amount owed, if they are willing to cancel the debt. This option is a bit more drastic than the previous two options. You can attempt to negotiate on your own with your creditors, but there are debt settlement companies who can do it for you and they are more likely to get a lower payment because they have the experience needed to do so.

When you go to a debt settlement company, they are going to need to know all of your financial information, including what resources you have that you can use to pay off the debt. Once you have signed all of the paperwork necessary, you will stop making payments to your creditors and start making the payments to the debt settlement company. This money will be placed in escrow until you have enough to make a settlement offer to one of the companies.

Accumulating this money in an account can take several months, but once it’s there, the company will begin contacting your debtors and making offers. This will be reflected on your credit report as settlements, and they can lower your credit score so you need to take that into consideration before using debt settlement to get out of debt.

For More Information on Debt Settlement Click Here!

 

Bankruptcy

Bankruptcy basically means that you cannot pay the debt that you owe. Most of us have heard of bankruptcy at some point, but what you may not know is that there are two types of bankruptcy; chapter 7 and chapter 13. Chapter 7 means that all of your assets are liquidated in order to pay back your creditors. Most people believe that they lose everything if they file chapter 7 bankruptcy, but that is not true and the majority of people are allowed to keep their homes, property and vehicle. It will, however depend on what is covered by the exemption law in your state.

Get Help with Your Debt Today!

 

 

Social Security Benefits & Retirement
Though all Americans look forward to the day when they can kick back in a lawn chair and spend time working in their flower gardens, retirement comes with many burdens. A fixed income or access to a 401(k) may not be enough to supplement the lifestyle many seniors are...
How to Manage Credit Card Payments
Do you have issues paying off credit cards? Sometimes the interest itself can be an overwhelming monthly payment. We have gathered some information below from credit experts that can hopefully help you manage your payments and find a way out from under...
Walmart Owes Money
Wal-Mart is a nationally recognized big box store offering low prices for customers who have everyday needs. The store employs more than 1.2 million people, and many of them are currently in a situation in which they could receive a big payout from the company for...
How Do You Repair Your Credit Score?
How Do You Repair Your Credit Score? You may be bombarded with ads for businesses telling you they can help fix your credit. Many companies say they have some kind of proven method for improving your credit score. However, you should first follow this advice and see...
Denied Insurance Claim? Don’t Give Up!
Buying insurance is a common and thoughtful step that people take to protect themselves financially from a major mishap, accident or other type of loss. When you purchase insurance, you understandably expect the insurance company to pay out on a claim so that you can...
Inexpensive Public School Alternatives
Sending kids to the public school a few blocks away is a simple task for some families. However, not all parents wish to follow this route. They may have concerns about the safety of the public school in the neighborhood, or they may want a different type of education...
A VA Home Loan Can Help You Get Affordable Housing
 Ever since the housing market collapse, lenders have tightened the requirements to qualify for loans. If you don't have the required credit score or enough for a 20 percent down payment, it will be difficult to secure qualification for a conventional...
Home Improvement Grants
 Is your home desperate for repairs? Are you at your financial limits, broke...flat broke? Have you ever wondered how it would feel to have the government help you be able to afford these critical repairs? Help is possible through new home improvement...
Relief Resources and Benefits Gov
 Let's begin with this. No One Is Guaranteed Government Assistance Just For Existing. That being said, Government aid can be very helpful to those enduring a financial struggle or hardship. It can also be beneficial for those looking to attain a higher...
Tips for Insurance Discounts
Home insurance and automobile insurance might be must-haves, but it doesn’t have to cost you an arm and a leg to have the appropriate coverages. There are things you can do to get discounts on your homeowners insurance and automobile insurance. Here are...
Best Advice for Seeking Employment
Your career and life depend on you taking the time to learn all that you can about earning gainful employment. You cannot get a job without finding the right approach that will open up opportunities. Keep reading if you wish to learn more. Speak with...
Which Student Loan Repayment Options Work for You?
Which Student Loan Repayment Options Work for You? The student loan process can be tricky and difficult to understand. Students often overlook the process from the beginning of college until graduation, never realizing the impact of the loans until payment become due...
Section 8 Vouchers Less Likely to be Accepted
 About 300 less, that is the number in Nashville, TN. Since 2010 there has been 300 fewer Section 8 vouchers accepted throughout the Greater Nashville Area. Families are being kicked out of their apartments and housing because the owners have just decided...
5 Ways to Keep Your House During A Market Crash
Anyone paying attention to the housing market in the Los Angeles area knows that home prices have been at record highs. National Mortgage News suggests that this could be a housing bubble about to burst, and a decline in home prices and an increase in mortgage...
Accepting Failure | Achieve Success
Everybody has a setback every once in a while, but it doesn’t mean that there is anything wrong with you. In fact, accepting failure can be a great opportunity to learn your own limitations and boundaries, then push through them, and provide you with a...
Best and Worst Student Loan Services
Best and Worst Student Loan Services This is the time of year when hundreds of thousands of Americans begin to prepare for their first semester in college. They begin to seek out the items that will sustain them during dorm life. Parents spend money on new sheets, hot...
Receiving $4000 in Home Rebates
 Are there any home improvements that you have been contemplating lately? Are you struggling to make ends meet already? Learn more about three Programs a that could help you and millions of homeowners qualify for a $4,000 rebate. These Are Very Tough...
Feeling Lost? Free (Or Cheap) Career Assessment Tools
In today's world, more people are struggling to pay/find for housing, medical bills, education, and other aspects of life. As a result, embarking on a new career is becoming a popular option to better themselves and their families. However, when choosing a new career,...
5 Strategies to Save Money on a Shoestring Budget
 If you are one of the many people who live on a tight budget, you may feel the stress of your situation on a daily basis. Even a seemingly small issue that arises and has reasonable expenses can throw your budget off track. Reducing your costs is a great...
Penny Pinching Groceries Plus Earning While Shopping
Penny Pinching your way into savings and earning! If you feel like you are wasting money on groceries then you're not alone. The average American spends around $160 per week at the supermarket. What if I told you that number can be easily cut in half by penny pinching...

The Premier Forex League

Subscribe

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Pin It on Pinterest

Share This