subject: Legitimate Debt Relief Solutions - 3 Ways to How Pay Back Your Creditors and Avoid Bankruptcy [print this page] While you are trying to fight your way out of financial problems, bankruptcy should be at the bottom of the list. A bankruptcy can stay on your credit report for more than 10 years. You also stand to lose all your property if you qualify for bankruptcy under chapter 7. Choosing a non bankruptcy way of working out your financial problem will be better for your future financial health.
Try to get a loan modification: If you are unable to meet your monthly payments you can get in touch with your creditors and ask for a loan modification. You can work out a new loan term with your creditor so that your interest rates are reduced and your monthly payments are lesser than what you are paying now. If your payment history has been good you might find your creditors more willing to negotiate the loan terms.
Debt consolidation: It is possible to consolidate all your loans and credit card debts into one single loan. If you have a house or a car which you can put up as collateral you will be able to get a loan with a low rate of interest. If most of your loans are in the form of credit cards or other loans which charge a high rate of interest then consolidating your loan will bring down your monthly payments. However, if you convert your unsecured loan into a secured loan then you will be at a risk of losing the collateral that you have put up for the loan.
Debt Negotiation: If credit card debt is the main reason why you want to file for bankruptcy then you have better options to help you out. If your unsecured loan is more than ten thousand dollars then you can ask your creditor for debt settlement.
Legitimate Debt Relief Solutions - 3 Ways to How Pay Back Your Creditors and Avoid Bankruptcy
