Credit is so easy to gain nowadays – it’s no wonder many people are in unmanageable debt. You are not alone if you are slow in making payments or often miss payments. Before you file for bankruptcy, you should consider the following options.
Debt Consolidation Loan
One solution is to get a debt consolidation loan. Simply put, you will find a lender who will loan you the entire amount of your debts. You pay off your creditors and make one monthly payment on your consolidation loan. The purpose of doing this is to avoid having to pay many different creditors.
If you find a consolidation loan with a lower interest rate than the current rates that you are paying, you will save money in the long run.
Some individuals get consolidation loans in the form of a home equity line of credit or a personal loan from the bank. Again, you will save from paying for finance charges if the interest rate is lower. If you have difficulty getting an unsecured loan, consider opting for a secured loan. A secured loan is backed by collateral, usually your home or other personal possessions.
For some useful tips on debt consolidation, please visit my previous post at https://kgmeyerpc.com/5-steps-to-credit-card-debt-reduction-and-money-saving-with-a-diy-system-3/.
Credit Counseling
Another solution to debt problems is to contact a credit counseling agency. A qualified agent will review your current financial state and take the necessary steps to help you control your debt. They will most likely contact your current creditors to negotiate repayment terms in the form of a lower interest rate or reduced monthly payment. Search your local phone book online to find a good credit counseling agency. Remember to check the agency for legitimacy by asking questions about fees and accreditation.
A credit counselor will also sit with you to discuss your financial future. They will teach you basic personal finance management skills and help you create a budget you can live with. Sometimes, they ask you to cut up your credit cards to avoid future debts.
Here is a link from a fellow blogger who has identified some more reputable credit counselor firms. To see more, visit https://www.thebalancemoney.com/best-credit-counseling-services-5073952.
Debt Management Programs
You can usually enlist in a debt management program through a credit counseling agency or find one yourself. In such a program, an agent will review your financial situation and ask a few questions to ensure you qualify. They will likely negotiate repayment terms with your creditors to lighten your obligations. They will then add up the total amount of debt and figure out a monthly payment for all your bills combined. You send the agency a payment, and they will make sure that your creditors are paid the right amount.
Again, it would be best if you did your research to find a good debt management program. Find a not-for-profit agency that has been accredited or recommended by trusted associations. Enlisting the help of a less-than-legitimate firm can get you in further financial trouble because some agencies will hold your payment longer than necessary so your money can gain interest for its profit.
Suppose you need additional assistance or have any further questions contact me directly if you are in or need the middle Tennessee area. For those outside this area, I can work with you, provided you are comfortable with a 100% remote arrangement.
