Financial trouble can often be solved. The key is to find the right debt solutions for your situation. Depending on how bad your financial situation is you might find there are one or two ways to solve the trouble. There are six typical fixes available to you. The following will outline them.
1. Consolidation: with this debt solution you are able to obtain a consolidation loan, which will cut down the interest rates, reduce the monthly payment, and help you pay off the debt. There are some troubling things about consolidation in that it doesn't always work for everyone. You still need to be approved for the loan. A company offering this type of loan may charge you a fee with the monthly payment. Additionally, the loan is often unsecured meaning the interest rate is higher than an equity loan would be.
2. Management: a management of monetary troubles is often through credit counselors that will examine your money situation including what you make and spend on a monthly basis. The idea is to find a little extra towards your monthly bills like the credit card bill to pay the amount down a little quicker. With this option, the counselor will look for a way that you can add a little to one debt payment until it is paid off. Then, you have what is left over to work on paying the next debt off. You use this debt solution until you are debt free.
3. Debt settlement: a negotiator is going to speak with your creditors to reduce the amount you owe. With this choice you need to have a lump sum you can offer the company. Chances are they will not take less than half the payment, but if you have a good negotiator and a situation where they won't get any of the payment the company might be willing to work with you a little more.
4. Self repayment plan: this is just how it sounds. Rather than depending on others, you find a plan. You might need to work out your budget and determine how much you can pay each month towards each debt. You may actively seek a secured loan that you can make payments on each month that is better than paying each debt separately. It is a handy debt solution if you have the discipline to follow it.
5. Ostrich Method: it's a cute way of saying you might hide your head and hope for the best. It is one that tends to bring the creditors to your front door. It is certainly not advisable. You cannot ignore your debts because if you do you will only have one debt solution left.
6. Bankruptcy: this choice will lead you to lose a lot of your credit standing for at least seven years. Your score is already pretty bad if you have debts, but it can be made worse. Bankruptcy is something you want to avoid, but may be the only solution to stop the collection agencies from hounding you.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.