Debt is insidious. It starts out as a few dollars here and there, and, like snowflakes, they pile upon your desk until there’s a mountain of bills you can’t shovel away fast enough. As the mountain grows, it can become an overwhelming avalanche that buries you in despair and desperation. When this happens, it can be hard to reach out for debt assistance. However, this is exactly what needs to be done to regain a solid financial footing.
The first step you need to take involves credit counseling. Whether your creditors are credit card companies, financial institutions or medical facilities, you should speak with them directly about lowering your interest rates. In many cases, creditors would rather get some of their money than risk a debtor declaring bankruptcy and receiving nothing.
After debt counseling, many people take advantage of debt settlement. In this case, you can negotiate with your creditors to reduce the overall debt owed. Many times, creditors will allow you to enter into debt settlement agreements if you go through their debt counseling programs.
Another option to consider is debt consolidation. This involves taking out one large loan to satisfy all of your debts. In most cases, you will need to put up a form of collateral, such as your home, vehicle, or other valuable possession to secure the loan. The advantage of this option is that you make only one payment each month, and in most cases, the interest rate is considerably lower than what your creditors were charging before.
Your last resort is, of course, bankruptcy. This is an option that should only be considered once all other options have been exhausted. It can haunt your credit for years and make it difficult to secure credit or even get a job. And even if you do declare bankruptcy, you’ll most likely have to liquidate all of your assets to satisfy your creditors.
There are, of course, advantages and disadvantages to each of these options, and Superior Debt Relief Services can help you dig through the fine details of each. We invite you to contact us and learn more about our services.
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