Which Debt Program Is Best?
It’s pretty hard to avoid debt these days, and the majority of Americans carry the burden of debt throughout most of their lives. A little bit of debt won’t hurt you, and it’s the primary factor that drives the economy. But the problem is that “a little bit” turns into “too much to handle” at an alarming rate. Once your debt reaches the level of “too much to handle,” it can feel like you’ll never make it out from under this burden.
Credit card debt tends to get all the attention these days, simply because it’s extremely common and often becomes unmanageable without any warning. But there are plenty of other sources of debt that can become just as overwhelming: mortgage payments on your home, high-interest auto loans, insurance plans for expensive cars, and (most recently garnering quite a bit of attention) the dreaded post-college student loans.
Most Americans today feel completely helpless when it comes to paying off debts, because there’s barely time to build up a good credit history before the monthly payments start barging in.
Acknowledging that you need some help paying back your debts is the first step to solving your financial problems -- and it’s often the hardest step to take. It can be very frustrating when you’ve finally taken this step because there are so many different services, all claiming to offer the best debt relief programs. You don’t want to make yet another poor financial decision.
So What Are Your Options?
Your debt solution strategy will ultimately depend on two major things: the types of debts that you have, and the amount of money you can afford to put toward paying off your debts. Although you may be able to organize and re-prioritize your spending habits, there’s no reason to be ashamed about seeking professional help from a financial adviser. The most common types of financial advising include credit counseling and debt management counseling. Other options you may want to consider are debt consolidation programs, debt settlement agreements, or filing for bankruptcy.
When you’re researching these programs, keep in mind that you’ll have to consider other factors beyond your current debts. Some programs, for example, will only be effective if you’re able to receive lines of credit with low interest rates, and you’ll only be able to get low rates if you have a decent credit score. Some programs require you to take out new loans in order to pay off pre-existing loans, and although this is often a convenient solution for the short-term, it may end up being very risky.
To start off, financial advisers will tell you a few pieces of advice: First: You should only consider filing for bankruptcy after you’ve exhausted every other option. Second: Paying off your debts -- and keeping them at bay -- is going to take a lot of time and self-control. Lastly, the plan with the simplest and most feasible strategies is going to be the best plan for you.
We’re telling you all of this right now because we want you to feel comfortable doing research on your own (after all, it’s your money and you certainly have a right to know what’s going on with it), but we also want you to know that there are plenty of resources available if you feel a bit overwhelmed. Ultimately, we want you to know exactly what to expect when you contact us to hear about our debt relief programs. We believe in your ability to reclaim your financial independence.