|
When you have exorbitant medical bills that you can not realistically pay back. This is often one of the only instances where bankruptcy should be used. This is because unexpected medical costs to save someones life can get to the point where it is just completely unrealistic that you could ever pay it back. When you have debt because of things like credit card debt from overspending. Their are other things that you can do to eliminate this debt without bankruptcy and your credit can be completely repaired after the process. Their are several avenues that you can take to accomplish this.
Debt settlement is one option you have to eliminate credit card debt. This is a process in which you stop paying your creditors and deal with the collections process until your creditors are willing to settle with you for anywhere from 20% to 60% of your balance you owe them. This can be a difficult and embarrassing process to get though. Collection agencies are no fun as some of us know all too well. But this can be a great way to completely eliminate your debt by saving the money you were paying your creditors every month until you have saved enough to settle. Credit counseling is another avenue that you can go through. This is a company that helps you manage your money better and they work to reduce finance charges, late fee's and other costly debt fees that are holding you back from being able to pay back what you owe. But consumers need to be aware that credit counseling is not good for your credit. Your creditors do not like credit counseling companies. There for they are not going to say nice things to the credit bureaus about you as a result. I do not really recommend this process, but it does eliminate the collection call process that comes with debt settlement. Another option you have for handling debt that has become too much to handle is to borrow money against your home. When you get a loan against a home. Different rules apply when you get a loan like this. Traditional unsecured loans have loan terms as long as 84 months. Where home loans you can have loan terms as long as 360 months. This makes a big difference in the amount of money you are required to pay every month. This means that on months when you can't afford to pay as much as you do now you will not have too. For example to get an equity line of credit for $50,000 at 9.875% APR. Your minimum payment would be about $411.00 interest payment. You are only required to pay your interest on a home equity line of credit every month. This amount will decrease to $100 as the principle amount gets paid down. Now that is a lot less then you will pay credit card companies to borrow this kind of money. Find loans like this at My Money Mechanic website below. For professional assistance with bankruptcy alternatives go to EZ Credit Card Center and look for debt consolidation in the menu. Fill out the form on the page that link takes you too for "i debt assistance". They can help you get the help you have been looking for to fix your debt problems. The debt analysis is free as well. This is just the part where they tell you what your best option is. We feel that if a company is going to help you they need to prove it too you first. That is why we recommend them to everyone. Looking for an honest company to help you avoid bankruptcy is important. Check out my website My Money Mechanic to learn more tips on managing your personal finances. We help people repair and rebuild their credit. Also check out our partner website My Credit is Killing Me to learn how you can repair your bad credit. http://www.mymoneymechanic.com/
http://www.mycreditiskillingme.com/ |
