Debt negotiation takes place in many different ways. Though the route you probably hear about most often involves talking with creditors in order to come up with an effective solution, you might find other debt management options to be more satisfying for your needs.
Options to Consider
Seek out the service of a credit counselor. Oftentimes, these services are free or very affordable. In addition to learning debt management techniques, you’ll also be held accountable for paying off some of what you owe creditors every month. This can be a great way to turn your situation around!
Also, don’t discount the value of contacting your creditors. When you’re dealing with personal loans from small banks your chances of getting more manageable terms greatly increases! Also, demonstrating good faith, and coming to your creditor prepared with a plan makes a world of difference. Definitely look into this option.
As a last resort, you can always file for bankruptcy. Chapter 7 bankruptcy allows an individual to completely liquidate their assets in order to repay creditors as fully as possible. After you go through this process though, you come out with a totally clean slate!
If you have an income (or a home that you don’t want to lose), Chapter 13 is another debt management option to consider. When you file Chapter 13 bankruptcy, you undergo a court-ordered debt-restructuring plan. You can hold onto your home and many of your assets while repaying your loans, and getting out of debt. Plus, this route stops debt collectors!