Debt Help Options
Swimming in Financial Solutions… and Problems
Whether your debt hole has only just begun, or if it has become too deep to let even a single ray of sunshine hit the bottom, there is a program available to help you live debt free once again. It doesn’t matter if you’re disciplined, flat broke, or lucky enough to have a rich uncle, keep reading to figure out your quickest and most effective way of getting your head above water again. However, before you move ahead with any plan, you may as well get a bit of free advice from a non-profit credit counselor to get some perspective on your debt.
Video: The Office – Declaring Bankruptcy requires more than just saying it.
If you have No Credit, No Assets, Lots of Debt
If your situation is particularly bleak and it looks like there is no hope in ever paying back your debt, then bankruptcy would be your best option – unless that rich uncle is willing lend a hand. One average, bankruptcies cost $250 to $2,000, and any bankruptcy attorney can take care of it. However, if you think there is even a glimmer of hope, definitely get debt counseling or debt settlement from companies like Credit Care or United Debt Relief to negotiate with your creditors and help to create an effective repayment strategy. Although it costs a one-time enrollment fee plus monthly fees, it could be well worth it to avoid the big black hole left by bankruptcy.
If you have So-So Credit, Mortgage, Lots of Debt
If you have a home, you could borrow against it with a home equity loan to pay off your debts. Although it isn’t the greatest option because missing a payment on a home equity loan is just as likely to cause foreclosure as missing a payment on your mortgage, if you lack excellent credit and have a lot of debt, this is a good solution. All you need to do is get in touch with your favorite lender, be it Citi, LibertyQuest, or your local bank to see if you can qualify. Otherwise, you just might have to muster all your discipline and try the next option.
If your credit is Good Enough to Not Be Horrible
If after speaking with a credit counselor your situation doesn’t need much more work than a few phone calls and on-time payments, you just might have to make out that budget on your own. Although it takes a great deal of discipline, this way can be much less expensive than working with a debt counselor. If it gets to be too much for you to handle alone, take the helping hand of a debt counselor – it just might save you from bankruptcy if the situation gets sticky.
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If you have Good Credit, But are Starting to Drown
If you have pretty decent credit, you have much better options. A bill consolidation loan can cover up to $15,000 with a low rate, or if it is credit cards eating you alive, a balance transfer to a low-rate or 0% introductory rate card is the way to go. Just keep in mind bill consolidation loans can be pretty hard to get unless your credit report is exactly as they require – all bankruptcies discharged more than 2 years ago, a 580 score, and a good payment history for the last several months. Companies like Credit Care or Credit Solutions can lend a hand with the loan if you think you can qualify.
