If you are greatly pressured by an overwhelming debt, which beyond your financial capability to resolve it, does it mean bankruptcy filing is the only option for you to get a debt relief?
Most often, debt counselors will not advise debtors to file a bankruptcy unless there is no way out of debt. The survey results found that 90% of debtors who go for this option do have other options, they just either don't know or they don't really explore for available debt relief solutions before deciding to go for a bankruptcy filing. If you are one more step toward a bankruptcy filing, hold-on for a moment because you might be able to get rid of debt with a better option. Don't ever choose to go for bankruptcy filing before you explore the available options.
If you are about to file a bankruptcy, it is no harm to explore more options since there is no other option as bad as this debt solution. The very first step you might need to take is to approach a credit counseling service. Most of credit counseling services are free of charge in term of providing counseling services. When you approach a credit counseling agency, a counselor will be assigned to understand your financial situation and your debt problem before they propose a solution that best fit your condition. Most probably you will be proposed with a debt management plan that may involve a monthly fee if your financial condition can fit into a debt management program. This means you have a solution that is better than filing a bankruptcy.
Other than credit counseling service, you may also approach a debt negotiation company to help you negotiate for a settlement. But, this option may require a lump-sum of money to be paid for the agreed settlement amount. So, you are able to prepare the money for settlement. Be aware that the fee you need to pay for the service of negotiation might be rather high, so make sure you get the negotiator to reduce your debt as low as possible. Some companies may help you to cut off 40% to 60% of your debt if you are able to pay a lump-sum of money to your creditors and get your debt erased. Therefore, debt negotiation for settlement should be a better option if you can afford to pay the negotiation fee and the settlement amount.
You will be a better situation to get your debt problem resolved if you have asset that can be pledged for a secure loan. Although paying off your debt with a loan does not mean you are free from debt, you will be able to relax the overwhelming and high pressure condition to a more comfortable level. For example, if you own a house, then you can apply for a consolidation loan or refinancing it to cash out the money and pay off your debt. Be aware that by securing a loan with an asset, you are putting your asset at risk because it will be foreclosed if you default the loan payments. Therefore, you need to make sure you pay the loan on-time during the repayment period. If you have asset that can be used to secure a loan, you can always get rid of debt without bankruptcy, what you need to do is to make sure you pay the loan on-tine so that you won't get yourself into bad debt again.
Summary
There are always other options other than bankruptcy filing to resolve a debt problem. You should always explore the available options to get rid of debt and avoid filing a bankruptcy with the best effort.
Visit Henry Davidson at http://www.debtconsolidation.theinfoplus.com for more information and resources on how to manage your money properly. If you are in debt, then visit the site to find out how to be debt free without bankruptcy filing.
Article Source: http://EzineArticles.com/?expert=Henry_Davidson
No comments:
Post a Comment