subject: Why Do Individuals Avoid Debt Credit Solutions? [print this page] Even though many are drowning in debt they tend not to recognize that there are various methods to legally reduce or eliminate debt, needless to say there are pros and cons to each option offered. Which approach you decide to utilize really depends on your situation and financial condition. There are many that find themselves in this position are all already struggling just to make the monthly payment or have by now have fallen behind on their payments. It is going against the current and the battle does not lead you anyplace and just leaves you exhausted Seventy percent of Americans already live from paycheck to paycheck and the state of the economy has put numerous in a precarious situation . There are no savings to fall back on since Americans are notoriously poor savers
So what is a individual to do? You just can't discontinue making payments and hope everything ends well, not to mention the harassing calls from creditors and collection agencies. . Besides you are still legally responsible for the outstanding debts. The option is to eliminate debt by paying it down and there are numerous ways to do this.
You can develop a plan to pay down your debt systemically and that will snowball into being able to pay more and more each month. This involves curtailing unnecessary expenses, developing a budget and sticking to it, there are tools available on the Internet to help you in this process. Another possible approach is debt consolidation, which involves consolidating the high interest credit card debt into a lone lower interest rate loan. It is prudent to use the services of a debt counselor or debt consolidation company to assist you steer through all the alternatives and choose the one that is best for you. If you financial situation is dire and the preceding two solutions do meet your requirements, then perhaps debt settlement might be your answer. Debt settlement involves negotiating with you creditor for a reduction in the amount of debt that will be paid back. The range of elimination is normally 25% to 65%, again you should have knowledgeable professional help to steer you through this process.
There are ways to legally eliminate debt and give you the fresh financial start you deserve. The first step is an honest assessment of your situation and a promise to look for solutions. Some of these options may not be ideal in the short run, but over a longer period of time it will give you the financial freedom you are seeking
