Have you been concerned about your finances and are considering filing for bankruptcy? Are you thinking that bankruptcy is the only option? This might not be the best option for you.
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Filing for bankruptcy costs money, several hundred dollars, and it has to be paid in one lump sum. Can you afford this? It will also really affect your credit rating for many years; you won’t be able to even open a new bank account.
Have you considered all your options? Have you tried different methods to get debt help? Have you tried the snowball method?
Snowball Debt Management
This technique is possible to implement on your own, you need to list your debts in order of lowest balance first. If you have a balance that has similar figures put the highest interest rated ones first. Then the idea is you pay of the minimum of each item except for the lowest balance. This you pay off as much as you can afford, you can work this out if you complete a budget. Then when you have cleared one debt you put the money you were paying to that debt to the next debt that is on your list. This will make you feel better and you will start to see results. This will also help to repair your credit rating as you start to pay off each debt and make the minimum payments on all your other debts.
Debt Management Plan
Getting debt help by turning to a debt management companies is an option that might be able to help; some companies will charge you for this service. There are some charities that will help you for free.
The idea is that the debt management team contacts all your creditors and works out a monthly payment plan. Sometimes they are able to fix the interest that you owe and sometimes they can even reduce the amount of debt that you owe. Then each month you pay the debt management company a set amount and they then pay this to your creditors.
A charity one will do similar but you will need to make the payment, they are there to help but they are not charging you for a service. This debt help might be more of a long term because you are getting the help from people who know what they are talking about but they are also teaching you how to get out of the situation yourself and how to manage your money each month.
There are many places that you can go for debt help and advice, talk to people that understand your situation and give you advice that is right for you. There are many charities that have specially trained advisors who can help, who can answer your questions and put you on the right path to getting out of debt.
Therefore, if you were thinking that bankruptcy was your only answer this guide might have changed your mind and given you other options of debt help to try before considering bankruptcy.