subject: Debt Management Techniques - 4 Fireproof Techniques For Your Debt Management Case [print this page] Debt Management Techniques - 4 Fireproof Techniques For Your Debt Management Case
Debt relief can be easy to obtain if you plan it correctly. The financial world has seen so much of turmoil that the institutions themselves are under threat of extinction. So it is the creditors who are more scared than the debtors. If you are staring at a huge debt, do not get stressed. You may fall sick and collect some more debt. Learn to fight and eliminate the debt.
Here are a few techniques to learn what is best to manage your debt. Take a look at how much debt you owe and how old it is. This will hold the key to finding a solution to your problems.
How much do you owe? Most people are even not aware as to how much money they owe. Take a stock of all your finances. Put it down on an excel sheet or use a calculator to work out the amount you owe in unsecured debt. The amount will dictate the solution. If it is more than $10,000 then bankruptcy or a debt settlement could do the trick. Lesser debt will require milder treatment.
Consolidation will help. Many cases are out of control due to bad handling. Put all the debt under one head. You will find that managing it becomes easy. You can also bargain for a preferential rate of interest. Money will be saved on annual charges and late fees of the cards that you will close down.
Think Debt settlement. The legal way of eliminating your debt without paying it back is negotiating a settlement. This will be possible if you are down with more than $10,000. The Credit card company has to be fully convinced that you do not have any other sources of income. Keep the documentary proof ready for it.
Bankruptcy the last resort. Bankruptcy will discharge your debt but will considerably damage your credit score. Moreover some states do not offer homestead protection in case of bankruptcy. If you live in a state sans home protection for bankruptcy you may end up loosing it. So take care to understand the rules first.
Go by the above techniques and you will not go wrong.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.
