If debt has become a major issue in your life and you are having a tough time paying the bills you may have considered bankruptcy as the only way out. However before you consider that as your only way to financial freedom I’m going to cover three ways to get rid of debt first.
The first debt relief option to consider a debt negotiation company. These companies specialize in working with your creditors and help reduce the total amount of debt that you might owe. In some cases they can even cut as much as 50% of your debt.
To qualify in most cases you’ll need at least $10,000 or unsecured debt since this is the only kind of debt they deal with and you must be facing some sort of hardship such as a hospital injury that won’t allow you to work or the lost of a loved ones income. This option can get you out of debt but in the end it may cost you as much as 17% of the total amount of debt you put in the program.
The next option is debt consolidation. This is the process of combining all of your debts into a large debt. Now this option doesn’t necessarily get rid of your debt but rather lumps into one big debt so you can gain two big benefits. First off, if you combine in the right place such as your mortgage or a second mortgage you’ll be able to get a lower fixed interest rate versus high interest credit card rates. On top of that when you combine your debts with your home loan you also gain the tax advantages that a mortgage offers as well.
The last option to consider is a do it yourself debt settlement option called the debt snowball plan. The great thing about this plan is that it’s totally 100% free and the best part is as you pay off your debt over time you credit will continually start to improve. This plan works by paying off your lowest balance debts first while paying least amount you can to all other debts. Doing this allows you to focus on paying off one debt at a time eventually paying all of your debts off over time.
In the end these three options can get you out of debt without having to go through bankruptcy.