In the world we live in now, it's not hard to rack up enough unsecured debt in a short amount of time to make bankruptcy look like a good idea. But is this really your best choice? Before you decide to file for bankruptcy, you should really look into a programme to help you deal with your debts.
Most of the time, a debt management agency will give you a debt consultant to help you figure out how much you owe and how much you can pay. The consultant will also help you manage your budget and pay off your debts.
This can be helpful in many ways. First, it keeps your creditors from bothering you. They will talk to all the people you owe money to on your behalf and explain your situation. They will talk to each of your creditors and try to lower the amount you owe them each month. They may even be able to help you get your interest rate lowered, so that more of your payment goes toward paying off your debt instead of paying more and more interest.
Second, your debt management counsellor can help you make a realistic budget by going over all your household and living expenses with you. This way, you can see exactly where your money is going and how much you should be spending on things like groceries and eating out. We waste money on things we don't really need a lot of the time, especially when we have a lot of debt.
Your debt management company can help you in a third way by combining all of your monthly payments into one. You send them the total amount you owe, and they make sure everyone gets it on time. This takes a lot of stress off of you and frees you from having to make sure everyone gets paid the right amount every month.
If this sounds like a good plan for you, you should choose a debt management programme instead of filing for bankruptcy. A bankruptcy will stay on your record for up to 10 years, but a debt management company will hurt your credit score much less. So, if you want to get out of debt, you should choose the debt management programme. You'll be glad you did.
