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!

 

 

Things You Need to Know About Section 8 Assistance
Things You Need to Know About Section 8 Housing Some families might find a safe, decent and affordable housing as a big challenge to tackle. Majority of regions in the United States do not have rent control laws in place. Therefore some renters find affording a...
Self Help Works Too!
Self-Help Works Too! Government assistance serves as a great safety net for a lot of people. Unemployment, SNAP, Social Security Disability, and other benefits operate as a great way to prevent total financial collapse following negative life events. However, each of...
Getting The Most Out of Your Dental Insurance
If you have dental insurance, it is imperative to know how to get the best out of it. There are several things that you need to understand to maximize the cover for the betterment of your teeth. Your dentist is the most resourceful person to advise you on how to get...
Who Qualifies for VA Home Loans
For many veterans and their families, buying a home can be a difficult experience. Many veterans have little patience for the drawn out process of finding a loan, and others have not always had the best luck with credit. Fortunately, Veterans Affairs (VA) can help....
The World of Federal Grants
Welcome To The Wonderful World Of Federal Grants Federal Grants - If you are planning to go to college or university but know that you would never be able to afford it on your own, or with the help of your family for that matter, one of the first places...
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...
Public Assistance Study
 According to a new public assistance study conducted by the University of Illinois and the University of California-Berkeley, a overwhelming majority of fast food worker's families are enrolled in one or more public assistance programs. These programs...
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...
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...
Car Loans Approved Today!
Drivers will be excited to hear that the cost of a vehicle has started a downward plunge making it even easier to get the car loans you have always wanted. According to predictions by GasBuddy, the average price for a gallon of gasoline is set to fall...
Modern Millionaires Mindset
Here’s A Modern Millionaire Rhetorical Question:   If you have a spare million dollars in your bank account today… How will you spend it? Pay off all your bills and loans? Buy your dream car? Dream house? Give your family a better life? Travel all...
Best Way to Build Your Credit Rating
In today’s world, credit can be easily destroyed. If you are young and entering the adult world, you may not always understand how to maintain a great credit rating. Often, you do not qualify for a loan or credit card due to having no credit. Lapses in employment or...
SNAP (Supplemental Nutrition Assistance Program)
The first nutrition assistance program was started in 1939. These types of programs were developed to help people during strenuous times and financial hardships. The program we know today (SNAP) was first introduced in 1961 as the Food Stamp Act that was...
Budget Tips for Today’s Family
If you are in charge of creating the family budget, chances are, you’ve had the unfortunate experience of having a brilliant budget plan that isn’t executed well. This happens to many families and couples, and with a little attitude tweaking, you can solicit the help...
Natural Healing Options for Arthritis
Arthritis comes in various forms, but it's always painful. The typical medical approach is to take some sort of pain medication (usually non-steroidal anti-inflammatory drugs, or NASDs) that might result in various side effects, such as stomach pain. Thankfully, there...
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...
Increasing Literacy in Children
Increasing Literacy in Children Literacy is important. This is a fact that cannot be stressed enough. Often, arts and literature are tossed to the side to make way for additional funding in other areas, but learning to read lays the foundation for further education...
Social Security Disability Benefit Application Help
 There are several advantages to applying for Social Security Benefits online. There is no need for an appointment and it will definitely save you time. Visitng your local Social Security Office can be very time consuming and frustrating. Read the...
Which Protection Is Best?
Keep Your Information Safe! Makes A Great Christmas Present! Credit card numbers are sacred these days. We’d never give them out to a stranger because credit card fraud and stolen identities are never more than one mistake away. But what if I told you that somebody...
Social Security Disability Assistance
 Social Security Disability Insurance pays benefits to you and certain members of your family if worked long enough and paid Social Security taxes. Supplemental Security Income pays benefits based on financial need. If you need help and personal guidance...

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!

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