Options Before Bankruptcy

Are you at the end of your credit rope? Thinking about taking a leap into the bankruptcy abyss

? Before you take such a drastic step, be sure you have explored all your options.

Credit counseling

Call a credit counselor. Sometimes what you need is professional advice to help you figure out how to meet your debt obligations. It can be simple things that are getting in your way-not planning your purchases, impulse buying, not tracking your bills or not paying them on time. A credit counselor can show you tips and tricks to keep you on track, and perhaps help you avoid declaring bankruptcy.

Debt consolidation

Sometimes all you need is debt consolidation to help you get your finances in order. That's where you take your debts and apply for a loan to pay them all off. The new loan is generally secured with some kind of collateral-such as your house. Then, you pay off the lending institution. It can make life easier because you have one monthly payment, and often the interest rate can be lower. On the other hand, you now have a lien against your home. But that might be a better choice for you.

Consumer proposals

If things are really tough, but you still don't want to declare bankruptcy, consider a consumer proposal. The details vary from province to province, but basically you must owe more than $5,000 and less than $250,000, excluding your mortgage. You must have a job and the ability to manage some kind of payment schedule, and you must be in the position where you simply cannot pay all of your creditors. A trustee puts the proposal forward to your creditors, and if they agree, your debt load is reduced.

Car title loans

Okay, so taking out a loan when you're already neck deep in financial hot water may seem a little kooky. But you're facing financial death by bankruptcy, so why not explore all your alternatives? And vehicle title loans are meant for people in tough situations like yours-from bad credit to bankruptcy. They are a higher interest loan, which makes sense given the troubled waters, but a car title loan might provide just the monetary infusion you need to consolidate your debt and help calm those rough financial seas.

How to qualify

To qualify for a car title loan, you must own your vehicle, and the vehicle must be under eight years old. If that describes you, consider making an application. It's fast and easy. You can fill out your application online, and in as little as 24 hours be approved for up to 40% of the wholesale value of your vehicle. Loan repayments are tailored to fit your current situation.

Before you declare bankruptcy, check out all the alternatives and make the choice that works best for you.

by: Molly Wider

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