How to Get Out of Debt Now Using a Debt Consolidation PlanThere are a number of different solutions out there that can get you out of debt. For many people, the only thing they can do is to file bankruptcy. This option is not without its own problems though. The first, and most important thing, is that it hurts your credit for at least seven years. If you do not have any other options, then you need to seriously consider filing bankruptcy. You will have to get a lawyer, and this is not an easy task. You will be expected to explain to them all of your financial troubles. You will probably have to explain why you lost your job, how your car needs new tires, or why you bought that expensive flat screen television. All of this should be done with an air of desperation. The lawyers are supposed to be neutral, but they will usually side with the creditors. They usually get paid on a contingency basis, so they make money off of the fees they receive. You might also have to endure a number of hours of talking to them over the phone. Many just simply do not want to help you get out of debt because they have nothing to gain from it. Instead, you should turn to debt settlement. Debt settlement is a process where you actually pay your creditors a lump sum amount. This comes from your own funds. This payment is usually much less than you owe on your bills, and it will help get you out of debt faster. This is a great alternative to bankruptcy as it is good for your credit, and your creditors actually prefer it. This process does have a bit of a learning curve. First, you will have to contact all of your creditors. There are not many options here other than to get in touch with your lender. Once you get in touch with your lenders, you will have to write them a letter informing them that you are not going to be able to make your payment at that certain date and time. After this is done, you will need to get in touch with a debt consolidation company. The companies will negotiate with your lenders and get your interest rates lowered. They will then redistribute the debt that you have two different companies who will pay it off. You will make one monthly payment to these companies, and they will pay your lenders. This can be a great way to get out of debt because you won’t have to worry about making multiple payments anymore. One thing to keep in mind is that you will have to be consistent in order to successfully complete this plan. It takes time to talk to your creditors, negotiate, and lower your rates. You will also have to continue to stay on top of your accounts to make sure everything is paid on time. If you try to start everything quickly and forget to make payments, you could end up getting stuck in debt all over again. For this reason, you should get a few months of solid on-time payments before you think about consolidating. Finally, once you get out of debt, you will have a lot more disposable income. You can use this money to invest, start a business, or save for retirement. The money that comes from consolidating will help you get out of debt now, but it’s not something that you can do forever. So be sure to be disciplined and stick to your plan.