Drowning in Debt? A Home Equity Loan Could Be Your Help
Are you drowning in debt? Do you wonder what to do to get out of debt? I know from personal experience. A few years back, I had a business where I marketed greeting cards. I was good at it, but not good enough to make a living. When the recession hit and we lost most of our corporate clients, my income wasn’t coming enough to pay my bills.
I looked for a solution. I tried to cut back on spending and reduce my credit cards. I also looked for ways to generate an extra income. Here are some things that may help you get started down the path of becoming debt-free:
Counseling. Many people overlook the power of counseling when trying to become financially stable. It is important to have your debt counselor/counselor help you work through your current debt situation. They will go over your income and expenses with you and help you determine how much of your income can be dedicated to paying off your debts. This is a very important step!
Debt consolidation. If you have many creditors, this is a great way to put all your debts into one monthly payment. Some lenders even offer free credit counseling and consolidation, so you don’t even have to worry about having to deal with creditors. Just find a lender who offers these services and arrange for them to negotiate with your creditors for lower interest rates and payment amounts.
Bankruptcy. There are many people who decide to file for bankruptcy. The reasoning behind this is that they have no hope of paying off their debts without declaring bankruptcy. I understand how you feel. If you have determined that bankruptcy is the only option for you, then you need to learn how debt-free consulting or credit counseling can help you file for bankruptcy.
Debt management. This may seem like a strange combination, but in reality it isn’t. Debt management allows you to set up a repayment plan that allows you to pay your bills on time. You also keep track of your debt on a monthly basis so that you know exactly where your money is going. Once you have been able to pay off all of your debts, you might not qualify to file for bankruptcy.
Debt settlement. Debt settlement allows you to payoff a portion of your debts in order to avoid bankruptcy. You do this by negotiating with your creditor. Most times this means that you will have to settle for less than the amount that you actually owe. In addition, you will probably have to pay taxes on the amount that you save since you won’t be able to file for bankruptcy until several years after paying your debts.
These three methods are great ways to eliminate your debt. However, it is important that the debtor remains committed to paying their bills. If they become distracted and stop making payments, creditors will not hesitate to pursue legal action. Therefore, the debtor should remain fully committed and make a plan to eliminate their credit card debts and other debts.
If the debtor doesn’t think that they can pay their bills and that bankruptcy is the only option, there is a fourth option. This plan involves filing for chapter thirteen bankruptcy. The procedure for declaring bankruptcy varies, but most people who file for chapter thirteen use a bankruptcy trustee. The trustee will sell your assets and use part of the proceeds to pay off your creditors. The remaining part of your debt will then be paid by the bankruptcy trustee.
The debtor will usually have to pay off a portion of the balance of the loan while avoiding bankruptcy court. If the debtor is unable to pay their loan off completely, the creditors will get nothing. If the debtor sells their assets before filing for bankruptcy, the creditors may also be able to recover some of their money from the bankruptcy court.
Many people think that they need to seek professional help in order to be completely free of debt. However, most people who are drowning in debt feel like there is no way out of this situation without professional help. While it is true that credit counselors can offer credit counseling services, you do not need to seek their help. In fact, seeking the help of a credit counselors can often be a waste of time if you do not already feel like you are in financial trouble. Credit counselors can provide you with advice, but the only person who can truly make a difference in your financial situation is you.
If you feel that you are drowning in credit card debt, you may want to consider a home equity loan. Home equity loans are easy to obtain because you own your home, so you don’t have to worry about repayment plans or interest rates. Unlike a credit counseling service, a home equity loan is a good option for those drowning in debt. Remember, if you are drowning in debt, a home equity loan is a great way to get started getting out of debt. Talk to your local credit card counselors for more information on how a home equity loan could benefit you.