Excessive credit card debt, student loans and mortgages that people can’t afford are issues that millions of people are currently facing. Luckily, there are sensible solutions and companies such as CuraDebt to assist people in reducing or completely removing their debt. If you’re finding it an increasing tough to pay your month-to-month expenses and you’re borrowing or jumping paycheck to paycheck and from one charge card to another, it’s time to take a serious look at these remedies.
Consumer Credit Counseling – Perhaps you’ve thought about, or even spoken someone from a consumer credit counseling organization in order to get your finances under control. Consumer credit counseling companies are typically categorized as “non-profit” companies who assist debtors in planning budgets to repay their debts. The major criticism of consumer credit history counseling agencies is the potential conflict of interest since each office is primarily funded by voluntary contributions from the same financial institutions that receive payments from debtors repaying their debts.
Debt Consolidation – Debt consolidation involves getting a loan to integrate numerous loans, including credit card debts into one lending. Put another way, debt consolidation is the procedure of taking out a new loan to pay off a number of other financial obligations. Most individuals that consolidate their financial obligations are typically doing so to reduce their interest rate, or to reduce their bills with the simplicity of a single loan payment. This is a common solution for people with credit problems (such as maxed-out charge cards, mortgages, student loans), that integrate all their financial obligations into one loan. Typically people seeking to consolidate their financial obligation need to have adequate equity in their homes, which is used as security or collateral. Be very cautious when considering this choice, as 85% of individuals who have gone this route have actually maxed out their credit cards again within 24 months of getting a debt consolidation loan and in addition, owe two times as much money as they did before combining their financial obligations. Still, debt consolidation can be really beneficial to individuals who are disciplined enough to continually make their month-to-month financing payments, and demonstrate self control to not utilize charge cards for pointless purchases.
Debt Negotiation – Debt negotiation is a procedure that entails working with your financial institutions and eventually reaching a mutually reasonable negotiation, which is usually 50% or much less of the overall quantity of financial obligation you owe. In order to qualify for debt negotiation, your accounts must be significantly delinquent and you need to be able to forward the settlement funds to the financial institution prior to the due date. If you are unable to meet that agreement then the negotiation arrangement will certainly become null and void and you will continue to owe your original debt amount. Debt negotiation is a good choice for individuals who simply cannot manage their monthly payments and prefer to eliminate their financial obligation within 3-12 months. It is highly recommended that you work with a debt relief agency who is experienced in negotiating with financing companies to produce the best result on your behalf.
Bankruptcy – As I’m sure you are well aware, bankruptcy is truly the “worst case scenario” for most individuals. This is due to the fact that individuals that file bankruptcy are faced with the personal bankruptcy being made a matter of public record, as well as enduring a negative credit history for a period of 7-10 years. If your bills are unmanageable and it’s impossible for you to commit to a long term settlement arrangement, or even obtain adequate funds for debt settlement, this could be your only choice.
I highly recommend that you take into consideration all of your options, and approach each of these with an open mind. Visit the CFPB for common sense tips and speak with debt relief professionals who have experience assisting thousands of people just like you who feel trapped in their financial situation. What matters most is that you effectively remove your debt and start enjoying your life again.
The National Foundation for Credit Counseling® (NFCC®)