By: Jimmy Chuang
You believe you're drowning in a sea of unpaid bills? fear not, as there are several methods you can pursue to alleviate the problems you are suffering. Here are the top 5 options for debt relief:
1. Debt consolidation. solidifying your borrowings into one loan has tremendous advantages. For starters, the new consolidated loan will have a new maturity period, which will save you from the late payment fines of your separate overdue loans. In addition to the foregoing, the new consolidated loan can require a more favorable interest rate, which will be amazingly lower than the summated amount you pay for the corresponding fees of the individual debts. Third, it is so much easier to take care of one debt instead of a number of individual debts. Debt consolidation is, undeniably, the most efficient kind of debt relief.
2. Debt settlement. Did you know that 80% of credit card companies are agreeable to sit down with a delinquent cardholder to come up with amicable terms beneficial for both parties. Other credit institutuions are also willing to reach debt settlements with their debtors. Don't neglect an overdue debt because the late payment fines and interest rate will pile up and bury you even deeper. Contact the credit company and try to agree on the easiest fulfillment plan for the satisfaction of your obligation. Despite the non-complicated nature of this approach, debt settlement remains one of the more obscure debt relief options available for the debtor.
3. Debt refinancing. Some people cope up with a demandable loan by securing another debt to fulfill the previous one. The new debt will have a new maturity period, which will spare the debtor from exorbitant fines. Debt refinancing is the most pragmaticdebt relief option there is.
4. Credit counseling programs. Enrolling in any of the several credit counseling programs in the market today will empower the borrower to get favorable terms when it comes to the satisfaction of his debts. The credit counseling institution will talk with each and every one of the creditors for a debt management plan, DMP for brevity, that will make things more convenient for the debtor to satisfy his obligations.
5. Bankruptcy. As a final option, and only as a final option, the debtor may file for bankruptcy. If the court decides the debtor to be bankrupt, his applicable properties will be taken and solt for the fulfillment of his unsecured debts. Even thogh the unsecured debts are not fully satisfied, the debtor will be relieved of them after liquidation and distribution of his aforementioned properties.
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