subject: Personal Debt Relief Solutions - Tips for Borrowers Struggling With Debt in Today's Economy [print this page] Many people were finding it difficult to repay the personal debt fully. There was a need to regulate the economy which was facing huge obscurity and uncertainty with respect to debts. Are you also one of those struggling with financial crunches and are not in a position to repay fully the debt? Stop worrying about it. The Federal Trade Commission (FTC) has come up with various rules and regulations which has made it convenient for the debtors in distress. There are various ways to settle your debt without losing your credit score. The debtor can opt for debt settlement and reduce their debt by approximately 60 to 70% on negotiating with the creditor. The creditor is also benefitted by financial settlement because he recovers at least a part of the debt amount and also get tax breaks for the same. The debtor is also benefitted from the fact that fake debt settlement companies have been eradicated to an extent. The new regulation of the government bans these companies from collecting upfront fees for debt settlement.
Here are a few tips for borrowers struggling with debt:
Create a conservative monthly budget and follow it meticulously: Since you are already in a stressful situation because of difficulty in repayment of debt principle and interest, it is advisable to be conservative in planning your monthly budget. Not only is it necessary to make a conservative budget, but following it religiously is also necessary.
Save money wherever possible: You must also try and save money wherever possible and only spend on necessities and not luxuries.
Look for best discounts available for necessities: Even while spending on necessities, you must look for best schemes and discount offers.
Look for alternate sources of earning money: Looking for alternate sources of earning money can be very beneficial in your appalling debt situation.
Discuss with creditors: With the new FTC laws, it has become beneficial for both the creditors and debtors to go for debt settlement. Tax breaks offered by the government and ban on the upfront fees has made debt settlement a preferred choice over bankruptcy.
Take professional help: If you are not sure, professional help is always available.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options. For a free consultation from a debt relief specialist in your area check out the following link:
Personal Debt Relief Solutions - Tips for Borrowers Struggling With Debt in Today's Economy
