subject: Debt Relief Advice –The Best Options to Avoid Bankruptcy [print this page] Debt Relief Advice The Best Options to Avoid Bankruptcy
Debt relief is reducing the principal and/or interest payment on loans. It simply means that you get to reduce the number and quantity of debts that you owe people, organizations or companies. Having debts can affect your well being, not only financially, but socially, physically, psychologically and mentally as well. Most people then seek to know how they can get out of debts. But how do you get out of that nagging debt or even settle just some of it? Debt relief is not an easy process, it is not a quick fix to all the financial worries that you have but rather a beginning to financial freedom.
So what steps can you take? What are some of the options available for you to relieve your debts?
Take time and compile all your debts.
Once you know all the debts you owe and have a figure you can work with, it will make your work easier in relieving the debt.
Cut down on unnecessary things.
Do not buy things that are not crucial to your survival. Always make a shopping list before walking into a store, this helps put an end to impulse buying.
Increase your monthly payments.
You can increase the amount of money you pay to your credit card company because paying only the minimum amount will not help reduce your debts.
Pay in cash.
This prevents you from increasing your debt by use of credit cards. Credit cards are known to be addictive and you simply present it and the cashier swipes, but at the end of the month you are faced with a large bill and the headaches keep coming. Pay cash!
You could also take money management tutorials.
These are classes held by experts and they teach you how to manage your money and eliminate your bills. Some of these tutorials are free online and they are a good start towards debt relief.
You could also take debt consolidation loans.
Debt consolidation is taking out a new loan to pay off other debts. This helps you relieve your debts but does not do much because you will still have to pay the loan at the end. The last option is filing for bankruptcy, this is the toughest and is recommended when all other options have failed and the debt accrued is high. It is wise though, to manage your finances at all times.
And finally, your credit card is a major debt accumulator. Let it go. Get rid of it, completely if you can. Or use it to buy investments - things that will pay for themselves and pay the interest, and then start earning you a profit.
