Because of the "free money" lending practices of the last twenty years, overwhelming debt has become a sad reality for millions of people.
Many people took advantage of the credit offers to live above their means, but now, the credit hangover begins and those millions of people find themselves unable to pay back the so-called free money they were given.
Now the work of repaying the debt becomes more than just a little daunting.
Who can help? Where do you turn for help with debt? You have several options that can help ease the burden of repayment, and each option depends on your particular circumstances.
You can take matters into your own hands and deal with it yourself, you can get help from a debt management company, or you can use debt consolidation.
Questions you need to ask yourself are, how far in debt are you, is it something you can handle on your own, how much are you willing to pay for help, and what kind of hit can you afford to take when it comes to your credit rating? To take care of your debt on your own, it will be up to you to contact your creditors and a make repayment plan.
They may offer you settlement arrangements, which could cut the amount you owe by up to 50%.
While this can have a negative impact on your credit report, it's better than bankruptcy and can shave thousands of dollars off your debt.
The money you save can be used to pay other debts and speed up the debt repayment process.
Debt management companies work with you to create a debt management plan (DMP) you can live with and that will satisfy your creditors.
They contact your creditors for you and arrange for repayment.
You will either pay them a predetermined amount each month, or deposit monies into a special account that will be used to pay your debt.
Debt management companies and their fee structures vary so research the company you choose carefully.
Make sure they are accredited and are in good standing with the Better Business Bureau.
When you work with a debt settlement company, they will make the debt settlement arrangement with your creditors for you, and if they are good, they will get you better terms than you would if you tried on your own.
They will however, charge fees for their services, usually based on the amount you owe.
Try to find a reputable debt settlement company that doesn't charge until your dept is paid.
Make sure they are listed with the Better Business Bureau and are accredited.
Whatever method of debt solution you choose, make a plan for the future to keep from falling into the same hole.
Many debt management companies will counsel you on budgeting, but do some research on your own, examine your lifestyle and make changes in your spending to stay out of debt.
Many people took advantage of the credit offers to live above their means, but now, the credit hangover begins and those millions of people find themselves unable to pay back the so-called free money they were given.
Now the work of repaying the debt becomes more than just a little daunting.
Who can help? Where do you turn for help with debt? You have several options that can help ease the burden of repayment, and each option depends on your particular circumstances.
You can take matters into your own hands and deal with it yourself, you can get help from a debt management company, or you can use debt consolidation.
Questions you need to ask yourself are, how far in debt are you, is it something you can handle on your own, how much are you willing to pay for help, and what kind of hit can you afford to take when it comes to your credit rating? To take care of your debt on your own, it will be up to you to contact your creditors and a make repayment plan.
They may offer you settlement arrangements, which could cut the amount you owe by up to 50%.
While this can have a negative impact on your credit report, it's better than bankruptcy and can shave thousands of dollars off your debt.
The money you save can be used to pay other debts and speed up the debt repayment process.
Debt management companies work with you to create a debt management plan (DMP) you can live with and that will satisfy your creditors.
They contact your creditors for you and arrange for repayment.
You will either pay them a predetermined amount each month, or deposit monies into a special account that will be used to pay your debt.
Debt management companies and their fee structures vary so research the company you choose carefully.
Make sure they are accredited and are in good standing with the Better Business Bureau.
When you work with a debt settlement company, they will make the debt settlement arrangement with your creditors for you, and if they are good, they will get you better terms than you would if you tried on your own.
They will however, charge fees for their services, usually based on the amount you owe.
Try to find a reputable debt settlement company that doesn't charge until your dept is paid.
Make sure they are listed with the Better Business Bureau and are accredited.
Whatever method of debt solution you choose, make a plan for the future to keep from falling into the same hole.
Many debt management companies will counsel you on budgeting, but do some research on your own, examine your lifestyle and make changes in your spending to stay out of debt.