subject: Debt Relief Tips - How To Avoid Bankruptcy with Debt Consolidation [print this page] You have unbearable debts and considering filing a bankruptcy as your debt relief? Don't choose this option unless you really need to do so, look for other alternative if possible such as debt consolidation. Bankruptcy should only be you very last resort solution when you really can't find other solutions. Bankruptcy has many undesirable consequences that will follow you for many years, it will remain on your credit report for 10 years; almost no lender will even consider you as a borrower for at least 2 years. Debt consolidation will always be your better option than bankruptcy.
Get Help From A Debt Consolidation Agency
There are many prestige debt consolidation agencies out there that can assist you to reduce your debt significantly and help you avoid the consequences of bankruptcy. When you contact a debt consolidation agency you'll be assigned an agent with a wide experience in negotiating with creditors. The agent will meet you to discuss and analyze you case. He will ask you questions regarding your assets, your income, your debt, your job, your expenses, etc. You will probably be required to provide documentation regarding these subjects too. After understanding your situation, he will propose a debt consolidation programs which meet your debt situations and repayment ability. Then, he will arrange a meeting with your creditors and negotiate with them new repayment programs. The people from debt consolidation agencies has a wide experience in negotiation with your creditor and can help you to reduce the amount of money pay for interest and can help you to get an extension on you loan period. Sometimes by means of debt consolidation people can get a reduction on your debt of up to 65%.
Debt Repayment
Once the debt consolidation people get your creditors to approve for the new repayment programs, you will need to start repaying your debt. The repayment options may depend on the negotiation outcome between the debt consolidation agency and your creditors. You may be asked to apply for a consolidation loan and once this consolidation loan get approved, this single loan will be using to pay for your debts and you just need to make your repayment on this single loan. However, if you didn't apply for a consolidation loan, sometimes you may also get single repay schema from the debt consolidation agency. Many debt consolidation agencies do provide repayment collection service to their clients and distribute them to the creditors. Hence, you just need to make a single repayment to the debt consolidation agencies and the agency will take care of repaying all your debts.
Conclusion
If you are overwhelming with your unbearable debt, you may think of declaring a bankruptcy is your only solution; but this always not the case, there should be other alternatives to repay your debts which you might overlook. Consult and review the propose solutions from debt consolidation agencies, they may help you to avoid bankruptcy with a debt consolidation as your alternative option.
At times you may find yourself caught into dire situations, wherein you need to pay off the credit card debt or else the debt goes on increasing with time, owing to interest rates. In such a situation, you may have to resort to odd methods, such as finding an additional source of income or selling your personal assets or unnecessary items. You can get a part-time job for yourself and use the money you earn from it to eliminate credit card debt. You can also auction some unnecessary items on online auctioning websites to raise some money to pay off your credit card debts.
Many people tend to get impatient, when it comes to the intriguing question - how to eliminate credit card debt. Remember that being patient is the key to success. You debt has reached this point over a period of time, and hence it will take sometime for you to repay it. You need to make a plan, and more importantly, stick to it with great determination. Once you have repaid the credit card debt, you can concentrate on living a life without credit cards. This will ensure that the nuisance of credit card debt is eliminated forever.
Debt Relief Tips - How To Avoid Bankruptcy with Debt Consolidation
