Many people are dealing with overwhelming debt burdens in today’s economy. With credit, medical and student loan debt rates on the rise, it is easy to see why many of us feel trapped by our financial hardships. It doesn’t have to be this way. In fact, there are several options that can help you find relief from your sinking accounts.
Destroying Your Debt
Most people want to avoid more intrusive debt relief measures and, instead, find a way out on their own. Personal debt relief strategies can be effective, but you need a plan. The debt snowball method is highly effective for paying off debts. While it may not be the quickest path to financial freedom, it certainly can be the most effective. Develop a budget and prioritize payments on your debt accounts. List your debts from smallest balance to largest and attack your smallest debt first, paying minimum payments on all other accounts. Pay as much as you can until it is paid off, then move to the next account.
Although getting out of debt on your own is very possible, it becomes extremely difficult if you have defaulted on your accounts. If you are delinquent in paying any one of your accounts, chances are your credit has suffered and you are now on the debt collection list. You may attempt to negotiate your debts with creditors, having them freeze your delinquency status while you make modified payments on your accounts. If creditors are unwilling to work with you, or you have secured assets like a car or home at risk of repossession, you may want to consider filing for bankruptcy. Bankruptcy is a quick solution to a spiraling problem with debt and one that can help you keep your possessions while you work out a debt relief plan.