Getting Out of Debt is Easier Than Ever, But Not Always Quick
Do you need help getting out of debt? Does your credit score look as if it’s going to continue to drop any time soon? If so, you are not alone. Many people have found themselves in a similar situation and are wondering what they can do to either fix their credit, get out of debt faster, or at least get more help getting out of debt.
One thing you absolutely must do is stop using your credit cards. That is the most important thing that you can possibly do right away. Do not open new accounts. If you have been making regular payments on those accounts and are seeing no change, you should think about canceling them. If you are planning to file for bankruptcy, this is something you absolutely must do as quickly as possible.
If you are already heading towards bankruptcy, you might be wondering if there is anything else you can do besides filing for chapter 13 bankruptcy. After all, this is the biggest hurdle you will face when it comes to getting out of debt. The answer is that there are still options available. You just have to know where to find them.
For example, many people think that filing for chapter seven bankruptcy is the end of the road when it comes to repairing a credit score. However, there is another option. Instead of heading towards bankruptcy, you should consider debt settlement. By doing this, you can potentially save hundreds of dollars, in some cases. If you are unable to repay your creditors after going through a debt management program, then you can benefit from filing for chapter seven bankruptcy.
There are a couple of different ways that debt settlement works. First, you will need to work with a debt relief service. These companies will negotiate with your creditors. They can often reduce your balances by up to 60%, in some cases. Then, once your accounts are paid in full, your credit score will automatically be restored.
The only downside to debt settlement is that it will have an impact on your credit score. This impact will not be as severe as those found with bankruptcy, but it is something that you definitely want to avoid at all costs. To some, this may not be an issue, but for others it will be a deal breaker. Once you start missing payments, you can expect collection calls and other collectors to harass you. If this happens, then it will actually hurt your credit score more than filing for bankruptcy would.
Another option that is becoming more popular among consumers who are struggling to make payments is debt consolidation. With this, you will likely end up with a lower interest rate than you had with your credit cards. Some companies even offer free consultation with the goal of helping you find a solution to your problem. If they are successful in doing so, then you may see a lower interest rate of your own. Debt consolidation usually involves taking out one loan to pay off several loans that you have accumulated.
With credit card consolidation and debt consolidation loans, it is important that you shop around and compare the different offers before making any final agreements. You also need to remember that if your interest rates go down, then your total payments could go up as well. Talk to different companies and find out what they can offer you for your needs. There are many companies out there ready and willing to help, but you need to be sure you are working with the best company available.