Stop Drowning In Debt - Take Advantage of Debt Relief Solutions
If you are drowning in debt, then you understand exactly how stressful it can be - it could rule your life. If that's the situation you're in, then debt management might be an answer. Debt relief can help minimize the financial pressure on you and assist you in helping to get your financial affairs back in order. Understanding how to fix your debt problems will ultimately lead to more secure financial future.
Before you even consider what options are available to you, you should consider stop using your credit card immediately to pay for things that you do not have the cash for. If you cannot afford to pay off your existing debts, then you should not be using your charge card to increase your debts.
The next step is to prepare a realistic monthly household budget. Ideally you should involve your spouse or partner if you have one, and work together on a family financial plan.This is an important step in developing a plan to reduce your debts and stop the harassing calls from your creditors. Knowing precisely how much you earn after taxes and how much you need to spend each month for basic living expenses, will provide you with a sense of how much is left over to repay your outstanding debts.
Of the amounts left over, the first portion will have to go firstly to any mortgage payments, then to any auto lease payments and finally to reducing your credit card debts.
The above information will serve as the basis for determining what debt solution options are available to you.
The first option involves the use of a debt consolidation loan. A debt consolidation plan allows you to take all these different monthly payments and combine them into one payment under the new consolidation loan. Raising a new consolidation loan may be difficult especially if you have bruised credit. In addition the new lender may require some additional security from you in the form of a mortgage on your property. This will certainly be determined by your level of debt and your credit history score.
Pay Day Unsecured Loan
If you are unable to get a consolidation loan, then there is always the option of a pay-day loan. This type of loan does not require any security so you would not be putting any assets you may own at risk. However these types of loans are very expensive as the interest rate is usually extremely high. You may be able to use the proceeds to pay off all or some of your debts. Nonetheless unsecured financings are usually restricted to smaller loans as a result of the lack of security to the lender.
There are many options available to you, including a number of government sponsored programs that may provide better solutions to your debt problems that the solutions discussed above.
Choosing the right solution requires a careful analysis of your income and living expenses and a realistic assessment of how long it will take to repay your debts.You need to be sure that the course of action you choose does not leave you in a position whereby you continue to make monthly payments for a number of years but find that at the end of that time your debt levels remain the same because all you have been doing is paying interest.
Government-sponsored programs include a Consumer Proposal as a solution to get out of debt
Under this program your debts are substantially reduced – by as much as 70% - and you get protection from your creditors while you pay off this reduced amount.
For more information, speak to a Licensed Insolvency Trustee. They are certified by the government to offer this solution, which does not require you to go bankrupt.
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