When you find yourself in debt there are many options available to help you out of this situation.
After years of credit being readily available and a 'buy now pay later' attitude, many people have found themselves swamped by debt they are struggling to repay. With high interest rates this debt soon begins to mount and you can feel as though there is no way out. However, there is help out there and different options available, for useful advice on debt relief programs you can visit websites such as http://thedebtreliefsreviews.com/.
So what debt relief options do you have?
Debt consolidation is the process of obtaining a loan in order to pay off all your debts, for example if you owe money on four different credit cards this can be reduced to just one loan, with just one, more manageable, monthly repayment. It also often means paying less interest. With this method you will usually have to close all other credit avenues to prevent the problem occurring again.
Credit counselling companies can give you a broader selection of options when it comes to debt relief. This process involves a counsellor sitting with you and reviewing your financial situation, they then advise you on the best ways to turn your debt around.
A consumer proposal is a debt relief option where a trustee works with each creditor to work out a deal for you to pay off a percentage of what you owe. If the majority of creditors accept this proposal, it becomes a legally binding process that all parties are bound by. You make your monthly payments to the trustee and the trustee pays the creditors.
When you are finished you are marked as paid in full, but your credit rating may be affected for a while after. The reason that creditors accept this type of deal is because they don’t want you to file for bankruptcy, as then they will get nothing. They would rather get some back of what is owed.
This option is often seen as a last resort and the decision to file for bankruptcy should not be made lightly.
When you file for bankruptcy, all of your unsecured debts will be wiped away and you can start over from scratch.
The unfortunate part is that you will no longer have a credit history, you may have to give up some of your possessions and the record of filing might follow you around for several years.