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In the first part of this article we went into detail about two of the five things you must know before you should even consider filing for bankruptcy.
We're now going to explore the three final things you must know, but before we do I just want to remind you that, bankruptcy is intended as a very last resort and should only be considered once all five of the items discussed in these two articles have been fully explored. Re-Mortgaging / Re-Financing Your House If you're a home owner, you could consider refinancing / re-mortgaging your house or using your house to apply for a secured loan to clear off your debts. This basically enables you to spread your existing debts over a more manageable term and allows you to choose a more appropriate monthly payment value. Very often, re-mortgaging your house to consolidate your existing debts can actually save you a lot of money, in particular when compared to revolving debts such as credit cards or charge cards, because of the associated interest rate and method by which the interest rate on your debts is calculated. Debt Consolidation Loan What about if you don't own your own home? Depending upon your current credit situation, you could also look into applying for a debt consolidation loan. This is basically gaining a loan which is then used to clear all of your existing debts and enabling you to just pay one easy monthly payment rather than lots of credit cards and loans separately. Down Sizing / Sell Off Your Assets To Pay Your Debts Off Another option to bankruptcy is to down size, such as selling your large expensive car, moving into a smaller house or selling off any other large assets you might own in order to use the proceeds to clear your existing debts. As you can see, there are lots of alternatives to filing for bankruptcy. It's obviously best to get the assistance of a financial professional, (ideally an experienced debt adviser), to make sure you find the right debt solution for your specific needs, but at least you know that declaring yourself insolvent isn't your only option. Whichever option you feel is right for you, it's vitally important that you start to take action now and get your finances in order. The sooner you start to repair your credit situation the better, so start dealing with your debts today! Peter O'Sullivan is a professionally qualified financial consultant, specialising in providing debt solutions and free debt advice to anyone in the UK who feels their finances are becoming difficult to manage. To find out how he can help you to deal with your debts, call 0800 056 9695 or visit http://www.DebtConsolidationCentre.co.uk today, for your copy of his latest Special Report entitled, "How To Get Out Of Debt Fast!" This is a limited time offer, so get your copy today, before it's too late! |
