In the current circumstances of economic down turn, job cuts, increased health care cost and inflation, Debts are building up and reaching frightening figures, recovery from which can be quite an intimidating task. Debts can build up from a variety of sources, including unpaid bills, vehicle or home loans, credit cards and many other ways.
If you have a liability, financial assistance is available in the form of Debt solutions. One of the golden rules is to avoid getting into it in the first place. Making a thorough study of your income and expenditure, creating a budget, and sticking to it can help you remain free of any financial liability. But, for most of us this is easier said than done.
If you feel that your money owing problems are getting out of hand and might be beyond the scope of your management abilities, Credit Counseling may be a good option. The internet is a useful resource to find non-profit credit counseling organizations that could assist you in reducing credit risk and help you get back control of your finances. If you find that the gap between your income and expenditure is widening, then it might also be a good idea to talk with your creditors to check on their in-built Debt solutions such as grace period, lower interest rates or reduced monthly repayment plans.
For those of you out there who have crossed this stage and are finding them selves sinking deeper and deeper into credit and those who are facing difficulty in making ends meet and keeping their credit scores from dipping any further, there are three options:
Debt Management Plan (DMP)
All these Debt solution options help you to clear your loans by entering into an agreement with your creditors to lower interest rate or monthly payments; waive penalty and extra charges; or make a one-time reduced settlement as repayment for the entire amount. The last option, of course is filing for bankruptcy.