If you are behind on your bills, you will probably need the help of a skilled debt settlement professional. If your situation calls for it, they may be able to get you a lower interest rate. Debt help is helpful for anyone who is having trouble with debt. Take action, but don't rush. If you're already in a mess, you don't want to make it worse by making a bad choice about who will help you.
Here are some of the options you can choose from:
You could apply for:
People who have trouble paying their bills can sometimes get loans or refinance their debt. But keep in mind that not all of these plans are good. For example, converting unsecured debt to secured debt is usually not a good idea, no matter what the lender says. If you do this, you've just made it more likely that you'll lose your property (yes, your home if you used it as collateral for the new loan) because if you don't pay back the new loan, they can now take it. Not a smart move, unless you were the lender. Do not make things worse by doing stupid things when you are in a bad spot.
Most people do well with debt settlement or negotiation:
Debt settlement companies can talk to your creditors on your behalf and try to get them to lower your debt by up to 60%. You are more likely to get a good settlement from these companies. Acting for yourself is like trying to be your own brain surgeon. It is not a good idea. Since the new bankruptcy laws came out in the fall of 2005, more and more people have turned to debt settlement as a good solution.
If you have a lump sum, like a loan from a parent or relative, you can often get a better return on your loan. However, you should let a professional do the negotiating for you, since you don't know how things work. There have been times when a consumer paid off their debt all at once as agreed, but the creditor still went after them for the full amount of the debt. If you have the right kind of help on your team, this won't happen.
Professional debt settlement companies will charge you a good fee for their services, but most of it will be based on how well they do. The more they charge you, the more money they should save you. With these kinds of services, you can get on with your life, stop being bothered by creditors, and get out of debt fairly quickly. Once you get it, don't let yourself get caught in the same trap again.
Debt Counseling is an option:
Debt counselling is a common way to help people deal with their debt, but it only helps a small number of people. Before you decide to file for bankruptcy, your creditors would much rather you go to credit counselling. Think about it. I don't know why they like it so much. I guess it could be because you still end up paying them the whole amount plus interest. Most of the time, these services are free. A lot of the time, credit companies also help pay for them.
Don't give them money until you've looked them over. As with any other kind of business, there are lots of scam companies and people ready to take your money and do nothing for you in return. Check online for scams about these kinds of companies, and make sure you know a lot about the people you want to work with before you use their services or give them money. If you feel like you have to sign up right away, run away. On the other hand, think about this knowing that you do need to do something to fix your problems.
