It does not matter how big your debt burden is. There is always a way out. But if you want to get out of debt for good, you need to be in it for the long haul. If you have a lot of debt, you need to be willing to work on getting rid of it. Some quick fixes to reduce debt are meant to stop the problem from getting worse, but they don't get rid of the problem itself.
Even though these quick fixes make it look like the problem is solved, they don't get rid of the real problem. Instead, they make things worse. The important thing to remember is that debt doesn't go away all at once. Try cutting it down slowly.
Of course, if you have too much debt and are about to go bankrupt, your last chance to pay back what you owe is through debt settlement, which is an aggressive way to cut down on debt. In this case, you, as the borrower, work with a debt settlement agency to get your creditors to lower the amount of money you owe them.
In the meantime, you must save up enough money for a lump sum payment. If the settlement is accepted, the creditor will let you know that the debt has been paid or settled. After that, it will be up to your creditor to let the credit bureau know that you have paid off all your debts. Settlement is especially appealing to creditors when the debtor is having trouble paying his bills and is close to going bankrupt. If the debtor goes bankrupt, the creditor could lose more money by only getting a small part of the original debt.
Debt settlements can only be used to pay off unsecured debts, like credit card bills and medical bills. Also, keep in mind that this is a quick fix. After this is done, the results will need to be taken care of. This would include things like a lower credit score, more calls from debt collectors, the chance of being sued, having to pay taxes, and the all-too-familiar need to make a deal with your creditors.
If you don't have as much debt, you should be able to get rid of the "yoke of death" soon. You just need to be determined, patient, and willing to try the newest ways to pay off debt, like debt snowballing or debt repayment. When the debt is from credit cards or something similar, this method makes it easier and easier to pay it off.
First, make a list of all your debts in order from smallest balance to largest (notice that the order is not based on interest rate, but on the due amount). If some of the debts are about the same amount, put the ones with the highest rates of interest on top. After that, make a promise to yourself that you will pay at least the minimum every month.
If you still have money left over, add it to the payments on the smallest debt, and keep focusing on paying off the smallest debt until it is completely paid off. When the smallest debt is paid off, do the same steps for the next debt, but this time add the minimum payment for the debt that was paid off to the money set aside for the next debt.
If you use this method for a long time, you'll find a way to get out of debt soon.
