Just Say NO To Filing Bankruptcy
Many people are facing the possibility of filing for bankruptcy. Sadly, many people who are in this position have been given bad or poorly explained credit advice and are wondering if there are any other alternatives to going down the bankruptcy road. There are options available to keep your good name and pay your debts.
Should I avoid Bankruptcy?
To begin with, filing for bankruptcy is a personal decision and one that can only be made by the individual in debt. Although only the individual can make this decision, there are people or companies out there that will discuss options and help debtors come to an educated decision whether to file for bankruptcy or to avoid it. A non-profit organization is the best avenue. Beware of companies charging outrageous fees for their services, as often they are only interested in making money from those in dire financial straits.
Often creditors harass those who are facing financial ruin to make their payments, this is because that is the only weapon they have. These threats can further add to a debtor’s confusion and stress. There are some simple things to keep in mind about debtors and who you should be paying first and who can wait. Make a priority list of the debts you should be concentrating on. Depending on your situation, if you want to keep your home and main vehicle, than you should concentrate on these two debts over your credit card or medical bills.
There is a good reason for choosing to pay other bills over medical and credit card debts. In order to take property from a debtor in the form of assets or possessions, these creditors must first take a debtor to court before they can take their property or possessions. Debts such as fines, alimony, child support, income taxes and student loans on the other hand don’t need to go through this process. By filing for bankruptcy it is likely these debts will still remain.
Trying to get creditors to give you a break should not be the deciding factor in choosing to go down the bankruptcy road. Even though this approach may bring temporary relief from lawsuits and arguments with creditors, bankruptcy is only a short tem solution. Once bankruptcy has been filed the person will be no better off than they were before. In hindsight, by avoiding bankruptcy, a person can sort out their affairs and come out a little better off than if they had chosen to file for bankruptcy.
Debt Management, How can I avoid Bankruptcy?
One of the first methods that should be used when trying to manage debt is to contact the people that you owe money to, for instance, financial institutions and credit card departments. Explain your current situation to them and see if an arrangement can be made to reduce your payments or waive late fees until you have caught up on payments.
If this fails, don’t be afraid to use the power of a good threat. Write letters to all of the creditors that money is owed to and tell them that you are likely to have to file for bankruptcy. Often the companies will try to work something out with their debtors or take less money than go to the trouble of taking debtors to court or having the debt completely wiped out during bankruptcy.
Is A Consumer Credit Counseling Service The Answer For You?
Another way to avoid bankruptcy and work on better debt management is to find a good Consumer Credit Counseling Service. This service will usually be a non-profit organization that will work with you and your creditors to find a solution or a better payment plan that will suit your finances.
Keep in mind the CCC is good for quieting your creditors, removing late fees, and lowering interest payments. If you have an old debt that hasn’t been collected on for a while, you might want to contact an aggressive debt consolidation company. They maybe able to negotiate as much as 60% off your original debt.
By consolidating your debts into one loan you can reduce the number of creditors and fees that you will be responsible for. Be aware of the consolidation loan policies on transferring money from other sources to the loan, as this can sometimes be costly. Often it is possible to borrow against your home to pay debts in this manner, although this can be risky at times as you may face loosing your home if you can’t make the payments.
The other option that you may be able to exercise is to sell off your assets that have value and pay that amount off on your debts. This may seem like a difficult option, although, if you are filing for bankruptcy, it is likely you could loose all of your assets anyway.
Bankruptcy is a process that is best avoided. If a debtor does decide to file for bankruptcy, it should be because they are left with no other option. The debtor should also be aware of the debts that cannot be wiped out by the bankruptcy process, even then a debtor seeks the help of a Credit Counseling Service before proceeding. For more articles like this bookmark www.AlternativesToBankruptcy.net
Author: Sherry Evans
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There are viable alternatives to bankruptcy, you need to educate yourself on what the options are and which options best fit your current economic siutation. Click on any of the links for more information, these are trusted resources that we have personally used or have strong references regarding their business practices and ability to assist consumers in avoiding bankruptcy and getting rid of their debt and stabilizing and improving their financial future.
The Big 5 Debt Relief Options
The average American has $9200 in credit card debt, in addition to good debts like student loans, car loans, and mortgages. 29% of all people with debt say that medical expenses contributed to their debt. Senior citizens, especially widows with little financial experience, have an average debt of $5800 because their expenses exceed their income from social security and pensions.
If your debt has grown to an unmanageable level, you are not alone. Many people feel the daily stress of debt, but debt relief options have helped millions of them get out of debt.
Common Debt Relief Options
You can take control of your situation and get out of debt with one or more of these four basic options:
Debt settlement
Credit counseling
Debt consolidation
Self-help/Debt Negotiation
Debt Settlement
Debt settlement services offer to negotiate and settle your debts for less than you owe. Debt settlement is an option for people who cannot afford their monthly payments, and who are not worried if their credit rating will be negatively impacted during the program. Debt Elimination in 12-30 months!
Credit Counseling
Credit counseling is a program that enrolls you on a debt management plan (’DMP’) which usually allows you to qualify for a concession rate from your creditors for lower interest rates and lower payments. The plan should include reduced interest rates, lessons in budgeting and money management, or a comprehensive debt management program. Get Online Debt Relief Now! Click Here
Some credit counselors can help you repay your debts, but be wary of credit counselors who:
Ask you to pay a high up-front fee
Require you to sign up before the consultation
Offer a plan without assessing your situation
Don’t teach budgeting or money management skills
Before you sign, check the Better Business Bureau for complaints.
Debt Consolidation
You may be able to consolidate your debts with a home equity loan or other debt consolidation loan. If you’re confident that you’ll be able to make the payments without building more credit card debt, debt consolidation can be an excellent way to reduce your payments and possibly reduce your taxes. You must be a homeowner to qualify for most debt consolidation loans.
If you are a homeowner, and struggling to pay your mortgage, there are loan modification programs that can help. Killer mortgage payments? Contact Loan Modification Connection today!
Self-Help Debt Relief
The easiest debt relief options are things you can do yourself, like:
Tracking your spending
Checking your credit reports
Negotiating with creditors for reductions
ClearUpMyDebtNow.com helps customers to rid themselves of debt quickly and easily!
Track your spending - Write down every penny you spend for one month, including monthly bills, automatic payments and bank charges. If you see a lot of unnecessary expenses like $10 weekday lunches or $4 magazines bought at a newsstand, cut those expenses and use the savings to pay down your debts.
Check your credit reports - Did you know that 4 out of 5 people’s reports have errors (including identity theft issues) that can increase your interest rate or damage your credit?
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Negotiate with creditors - Call your creditors and ask them to reduce your interest rate in order to keep you as a customer. If you know a payment will be late or you can’t pay it, call the creditor before the due date to arrange a new payment plan.
Debt can be stressful, but once you gain control over it, you’ll sleep better at night. Debt relief options like free online budgeting and debt management tools or professional credit and debt services can help you become free of bad debt and start planning for your future again.
We all need credit cards, for one reason or another, but are trying to cut back on using them due to rising minimum payments and interest rates. One way to better manage your cash, and still have a branded credit card to use for purchases, online bill pay, ATM use, online purchases and more, is to obtain a prepaid credit card. You can still build credit with some of these types of credit cards, as well as manage your purchases, your cashflow and NOT add more debt to your bottom line. Check out these resources:
MasterCard Prepaid Card - FREE Direct Deposit, Online Pay Bills, Get Cash from ATM’s, Guaranteed Approval!
Bad Credit? No Credit? Get a Prepaid Visa RushCard
By: Justin Narin
Article Directory: http://www.articledashboard.com
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Many students and consumers are struggling in this economy with not only credit card debt, mortgage debt and other financial pressures, but on top of that is also student loan debt. There are ways you can consolidate your student loan debt, obtain a more advantageous interest rate and be able to apply that money saved to pay off of other debt. Student loan consolidation is a great alternative to bankruptcy and can help some consumers from having to take the very serious step of bankruptcy, when coupled with other debt consolidation or debt management programs.
Private student loan consolidation takes some research and planning before making the final decision or it will be consumer beware. Check out what's available and compare their terms. Then write down the offerings of the ones that made your short list and make the final decision based on what you found will give you the best deal. This article will name some of the offers and their terms, but one has to make sure they mean what they say they are.
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