subject: Debt Relief Resources - The Best Options For Consumers in Massive Debts [print this page] Debt relief has become a hot topic everywhere as people have accrued huge amount of debts over a period of time. With the recent recession, people are trying to find ways to pay off their debts in order to reduce some of their liabilities.
In order to get rid of your debt, you need to know exactly how much debt do you have in your name. You can find this information in your credit report and with the help of some recent bills. Make a list of all the loans that you have taken with the total amount of debt and the interest rate being charged on them.
With your debt information in hand, you can formulate a payment plan. Financial experts advise people to pay off the loans which have minimum balance. This helps in making your debt list shorter. Some might find it more convenient to pay off the loan which is charging him the highest interest rate since they take up most of your money on a monthly basis.
If your current income cannot support your debt payments then you can try to consolidate your debts. A debt consolidator will buy your debts at a much lower interest rate and might even discount on the total balance. A reduced interest rate will help you bring down your monthly payment towards these debts.
You can approach your creditors and ask for debt settlement. This will help you settle your account for much less than what you actually owe. A debtor can get almost 40% to 60% of his debt eliminated through settlement. However, the debtor might be asked to pay off the remaining debt in one single payment. This method has a negative impact on the credit score of an individual.
Debt Relief Resources - The Best Options For Consumers in Massive Debts
