The way out of debt

If you find yourself in the more and more common situation of overwhelming debt and bills you just can't keep up with, don't despair. There are options out there and help available to get you out of debt quickly and on the right track. Use these 3 debt relief options to avoid bankruptcy and get your debt eliminated quickly and easily.

Debt Repayment Plans

A debt repayment plan will take into account all your debts, lines of credit, and those credit card bills. These bills will be compared with your income and your expenses each month to find a structured payment plan you can stick to. You will have to make changes in your life to stay on this plan, and stick to the simple rule of you must make more each month than you owe. If you are just starting to feel the pinch of debt, this option of organizing your payments is your easiest and least drastic option. It can be the right amount of help to get you back on track without ever missing a payment to a creditor.

Debt Consolidation Loans

Debt consolidation loans are the next step you need to explore when a simple payment plan is not enough and you still cannot meet you monthly financial obligations. A debt consolidator will organize all your debts into a single lump sum and usually get that amount lowered by 50% or more depending on how much you owe. Next you are given a loan to pay off that new lower amount with a lower interest rate and a single manageable monthly payment. Your credit will not be negatively affected, just as long as you make your debt loan payment each month. Debt consolidation is nothing new, but it could be your best option to get out of debt quickly and without long term damage to your credit worthiness.

Debt Settlement Options

Debt settlement is the next stage in evaluating your financial situation and debt crisis. If a debt consolidation loan will not work for you because you already have poor credit or do not wish to take a new loan to get out from underneath your debt load, debt settlement can help you. In a debt settlement your credit counselor will work with your creditors, everyone to whom you owe money, and negotiate the outstanding bills and interest rates. While this option may negatively affect some accounts on your credit report , it is certainly not bankruptcy and will not destroy your credit for 10 years or more.

Need a little inspiration? These stories of debt relief will help.

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