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How To Obtain Debt Relief Without Bankruptcy

James — Fri, 23 Apr 2010 21:51:31 +0000

Did you know that even if you are about to lose everything you can gain debt relief without bankruptcy? If you are loathe to have a bankruptcy on your credit report, but are so far in debt that your creditors are threatening to foreclose on your home, you should know that you can get the help you need for your debts without ever setting foot in a courtroom.

Financial Planner

Debt relief without bankruptcy will take some careful planning and negotiations, but it can be done if you know how. Your first thing to do is seek some financial counseling so that you can get yourself on a good solid budget that you can stick to. This might mean that you don’t get to go out to dinner so often, but you will get yourself out of debt this way. A credit counselor or financial planner can often help you to figure out a plan to pay off your debts and find relief without bankruptcy.

Lenders and Creditors

The next thing you need to do to get debt relief without bankruptcy is to talk to your lenders and creditors. This means that if you are behind on your mortgage, you will need to spend some serious time on the phone with these people in order to set up a temporary forbearance or loan modification that can help you to be able to get your account caught up so you can resume your regular payments. If you cannot afford your regular payments for a while, you may have the option of seeking a modification or only paying the interest on your mortgage for a while. This could buy you the time you need to be able to fix your credit and for the housing market to bounce back enough that you can refinance your home for a lower, fixed payment you can afford.

Your Credit Card Debts

When you’re looking for debt relief without bankruptcy, you will also need to know your rights when it comes to credit card debts, because this can get tricky for many people. Plan on negotiating with your creditors to obtain a lower interest rate on your debts and consider settling to pay off the debt with a ding on your credit.

Getting debt relief without bankruptcy can be difficult and might take a while, but it is possible. So, instead of hiding from your debts the way you’re used to doing, why not just work to take care of them one by one? Before you know it, you will be debt free for good and that will be well worth it in the end.

Debt Relief Vs. Bankruptcy – What’s Your Option?

James — Wed, 16 Dec 2009 21:41:37 +0000

It’s a sad state of affairs that so many people are being forced to consider debt relief vs. bankruptcy, but in tough times, this is just the truth of a situation. You should know that if you are seeking advice on these topics and you are very deep in debt, you might be better off to consider bankruptcy. And, in fact, you aren’t alone in feeling this way.

You should know that debt relief focuses most often on repaying your debts over time, and depending on what your debt consists of, this may not be a great option for you. Debt relief is wonderful when you have unsecured debt, so if you have mostly credit card, or unsecured debts of any kind, then you should be taking a good, hard look at debt relief. The pros are that seeking debt relief either through consolidation or credit counseling or both looks much better on your credit report and in some cases you can even eliminate the negative effects to your credit rating. Add that to the fact that you will be working to repay your debts over time and will potentially learn to manage future credit and in most cases, you have a real winner for handling your bills and stopping collection calls.

Then, if you have secured debts, such as mortgages and car or boat loans, you may seriously want to consider bankruptcy when you are so far behind that you cannot make your payments and you are about to have your home foreclosed on or your car repossessed. You should always try to work with your lenders before it gets to this point, because many times, there are options that can make it easier for you to make your secured loan payments and keep your property, but you won’t know about them unless you talk to your lenders.

That being said, if you have just let things go too far and have no other choice, then you may want to consider filing bankruptcy, which will allow you to keep your home and car, but still manage to get rid of your other debts that are holding you down. You should know that when you file bankruptcy, you are going to have a black mark on your credit for a very long time, but with diligence and effort, you can rebuild your credit score and eventually find that you have better credit than ever before.

When you’re faced with the question of debt relief vs. bankruptcy, it’s important to consider your options very, very carefully so that you can ensure that you make the right choice for you and your financial future.