Debt Settlement and Consolidation Agencies: These agencies exist to offer you help with your debt. They can offer you various options to choose from. No single resolution is suitable for everyone. In fact, you may even need a custom-made program according to your needs. In order to explore how these companies or agencies can help you in relation to your credit and debt, you may try to seek out a reputable company and set an appointment with it. Consulting such a company with your debt problems may be the best way to go as you will be able to check out the agency while at the same time get some free debt relief advice from them. Beware of such agencies that charge you a fee for a mere consultation. You ought not to pay them to get more information about the services offered by them.
Debt Consolidation: You may either take up a secured debt consolidation loan by taking up a home equity loan, refinance your primary mortgage or you may use a debt consolidation service. With the initial option, a mortgage loan means that you are probably getting a lower rate of interest beyond your high-interest rate credit card debt. Also, it is tax deductible. However, the downside to this is that you may risk losing your home if you are unable to service the second mortgage. Furthermore, mortgages are long-term loans so it means that the monthly disbursement could be lower, but it will take a longer time and a cumulatively higher cost for you to achieve financial freedom. In the second option, you get a debt consolidation agency to help you combine your debts into one single disbursement. The agency will bargain with your creditors and make an arrangement of a payment schedule so that you just pay the agency while they will settle with your creditors.
Rolling-up to Disburse off your Debt: In lieu of just paying the monthly minimums, it is probable for you to disburse off your debt in the course of a planned repayment, known as a ‘roll-up’ strategy. Making use of this method, you may be in the requisition of cutting down on your expenses. You will carry on to dispense all your monthly debts, but the extra cash saved from cutting down your expenses will go towards paying your highest interest account so that you may be able to pay it up as soon as possible. Keep doing this for each of your accounts and pretty soon, you may probably become debt-free.
Consumer Credit Counseling: You can head towards your local consumer credit counseling company for financial counseling and budget planning. These companies even offer debt management plans if that’s what you want.
Debt Settlement: Again, you may navigate for a reputable debt settlement firm to help you negotiate the credit card debt and perhaps come up with a lump sum settlement. These firms will negotiate with your creditors to diminish your debts, sometimes by as much as half of your principal balance, and since it takes 2 to 3 years to complete, you may probably find yourself debt-free pretty fast. With this option, the drawback is that it may damage your credit rating whilst under this program and for a year or two afterward.