When you are not in a position to pay your bills on time and are not able to manage your finances comfortably, make sure to come up with an ideal solution. You can participate in free counseling sessions and come up with the right solution ever.
Let us take a look at some of the debt solutions that will help you keep off from credit card bills as well as other dues.
- Debt Consolidation
This is one of the well known solutions that will help you get rid of credit card debt as well as other bills. By going in for this debt solution, you will find that the creditors will lower the rate of interest as well as reduce/eliminate late fees. All you need to do is go in for a single monthly payment to your consolidation organization which will be distributed to the creditors.
- Debt Settlement
With this procedure, the organization helps you in negotiating with the creditors and lowering the outstanding debts. You need to make a fixed amount payment every month to the settlement company. The amount that you pay is accumulated into a lump sum amount which will be paid to the creditors in the due course of time.
- Debt Management (DMP)
Here you will be able to participate in a credit counseling session. Here a credit counselor will analyze your debts and finances. The credit counselor will prepare a budget so that you can save enough money. If you have a huge debt by your side, the counselor will help you with a DMP. Besides, he will negotiate with the creditors so that they lower the rates of interest and lower the fees.
- Self Repayment Plan
The self help program will help you make your payments on your own. Here you will be not in need of any professional help. However, this program will be a true success if you follow a stringent budget on a monthly basis.
When it comes to filing bankruptcy, it certainly means that you are under the pressure of a huge debt. However, this is considered to be the last option when all the aforementioned options fail. Hence, it would be best on your part to avoid this option as much as possible.
- Ostrich Method
This process engages no steps for paying off bills. You will have to ignore the debt as well as hope that it will soon disappear. But then, it is not advisable to overlook debts as this may hamper your credit score. Over and above, the creditors can sue you or you may also get harassing calls from the collection agencies.