DEBT is STRESS! DEBT is like having a BALL and CHAIN attached to your ankle. DEBT is oppressive. Debt has brought down marriages, businesses, families and homes. It has brought about depression, hopelessness and even suicide. That’s the bad news but I didn’t have to tell you that; you already knew it so let’s get down to the nitty gritty. It’s time to configure your Personal HOW To GET OUT of DEBT Plan!
We start with a brief observation of the paths used to get out of debt. Some you may have heard and are familiar with; others may be new to you or maybe you just never thought of it that way.
1. Reduce expenses
2. Increase Your Income
3. Debt Statute of Limitations
4. File Bankruptcy
5. Debt Consolidation/Mortgage Refinance
6. Debt Management/Credit Counseling
7. Debt Settlement
8. Do It Yourself Debt Settlement
How To Get Out of Debt Path #1 – Reduce Your Expenses
In certain situations, all a person has to do is reduce their expenses and use the money they save to pay down their debts. It starts by examining what you can live without and still live. This pathway may mean downsizing your car, home, apt, etc. It may also mean temporarily cutting out activities or delights you may have come to enjoy in order to reach your goal, but man it is worth it!
How To Get Out of Debt Path #2 – Increase Your Income
There are numerous ways to increase your income; you are only limited by your ideas. You can seek a pay raise, get a part time job, start a conventional business, start an online business, get into investing as a day trader or investing in foreign currency. It boils down to this; there are opportunities out there for creative thinkers. Put your thinking cap on and get down to business.
How To Get Out of Debt Path #3 – Debt Statute of Limitations
Believe it or not, some people are in such financial disarray, that using the Statute of Limitations, seems to be their only viable option. All most all debts have a statute of limitations. If you’ve had debts hanging over your head and they are at or past the statue of limitations, this could be an option for you.
How To Get Out of Debt Path #4 – File Bankruptcy
Filing bankruptcy should be your absolute LAST resort. Actually, unless you are facing dire legal actions stemming from debts, you don’t need to file bankruptcy. Yes, the pressure from debt collectors can seem unbearable at times. Nevertheless, if you become proactive and attack your debt, you should be able to avoid being sued for debt.
How To Get Out of Debt Path #5 – Debt Consolidation/Mortgage Refinance
This path doesn’t actually get you out of debt; it merely reduces your interest rates and monthly payment. Essentially, with this path you are shuffling debt from one hand to the other, just at lower rates. The idea is to take the money you save and put it towards paying down your debts more rapidly. It works like a charm for those who stick to the plan.
How To Get Out of Debt Path #6 – Debt Management/Credit Counseling
Credit counseling and debt management programs really boils down to renegotiating debts. Both of these plans put a halt to any debt collections and give the debtor the ability to step into a more affordable payment plan. It’s somewhat like a consolidation without taking out a loan. This path is for people who are making payments, (usually just the minimum) and this type of program would effectively reduce their pay out amount and in turn free up some money. The only caveat? There is usually a hefty fee for this service unless you go with Non Profit Consumer Credit Counseling.
How To Get Out of Debt Path #7 – Debt Settlement
This path to getting out of debt involves hiring a debt negotiator to go in and push for settling your debts with your creditors at an extremely reduced rate. Most creditors will take the offer because they realize it will be better than walking away with nothing and will probably be better than what they would end up with on a Chapter 13 bankruptcy. The only caveat? Although you will receive considerable discounts on your debts, the fees are astronomical. In some cases as high as 20%!
How To Get Out of Debt Path #8 – Do It Yourself Debt Settlement
This path to getting out of debt is fast becoming the weapon of choice for many debt laden consumers. In a nutshell, you become your own negotiator with one great bonus. Although you can, you don’t have to go it alone. A small percentage of the firms that put out debt settlement software applications also provide coaching with the software. People who opt for this path end up saving thousands in fees, not to mention the astronomical money they save by negotiating down their debts.
What’s next? Evaluate each of these options in relations to your current financial situation and status and make a decision and stick to it. Bear in mind, I only provided a very brief description of each path; you will need to take an indepth look before proceeding forward. The key is having a plan and carrying it out!