After I entered the job force at 18, I had money problems for quite a number of years. I earned a decent income, but I lived paycheck to paycheck and just felt like I would never get ahead financially. One day, determined to get ahead, I decided to record every purchase I made for a month to find out just where my money was going. I learned a hard lesson that day that small purchases here and there throughout the month really add up. I committed to a much smaller budget and began stashing savings away. Then, I researched the world of investing and made a few strategic ones with some of my savings. I am now doing much better financially, and I want to help others who need it, so I am starting a blog. Come back often for money management tips and tricks explained simply!
In this day and age, it can be hard to save up money in your savings account let alone to not go into debt. If you have maxed out all of your credit cards, are drowning in debt, and are starting to receive calls from creditors, then you may be wondering what options you have. One way that some Americans chose to become debt free is through bankruptcy. The type of bankruptcy that you file, may help to erase a lot of your debt, but it can also be damaging to your credit score for several years. Depending on how much debt you have, bankruptcy may or may not be the best option. This article will take a closer look at a few different options for you to choose from. Ready to learn some more? If so, then read on.
1. Debt Consolidation
If you have a bunch of private loans and credit cards, you are paying interest on each one of those things which can add up to thousands of dollars each year. One thing that you may want to consider is debt consolidation. Debt consolidation allows you to consolidate all of your consumer debt into one monthly payment with usually a lower interest rate. The benefits of this include one lower interest rate and one monthly fee so you won't miss a payment in the future.
2. Debt Settlement
Another option that you have to consider before you think more about bankruptcy is debt settlement. A debt settlement company will work with creditors on your behalf to come up with an agreement for you to pay off the debt you owe. Typically, you will come to an agreement where you pay the company a smaller amount but it is then seen as a full pay off amount. Debt settling allows you to be in good graces with companies without having to necessarily pay off the entire debt that you owe.
3. Bankruptcy
If you have a lot of debt and have tried those two options, then it may be time for you to look further into bankruptcy. Remember that bankruptcy should be seen as a last resort, but if you're in need of some help, then it is definitely there to help you get out of your financial hole.
Keep all of these things in mind when you are weighing your options regarding whether or not to file for bankruptcy.
For more information, contact Century Support Services.
Share26 September 2019
