Paying off a large amount of debt can sometimes feel like an impossible task. If you’re not making enough each month, you could find that the debts keep piling up as you’re constantly unable to make repayments.
Sometimes it’s possible to negotiate terms with lenders so that you pay off the debt in smaller chunks or with less interest. In other cases, there may be ways of consolidating debt in order to make it more manageable.
But what if this is still no help? What if you still can’t make payments?
In these instances, there are ways of writing off debt – sometimes partially, sometimes completely – without having to pay it all. Many of these debt relief options aren’t simple, but are worth it in the end. Below are just some of the ways of reducing debt without having to pay it all.
Bankruptcy
Bankruptcy is the fastest way to wipe all of your unsecured debts. It comes at a price however – any assets you own such as your car or house may be sold to pay off your creditors. If you own a business as a sole trader, you may even be forced to sell your business. Your credit score is also likely to be severely damaged.
Bankruptcy does not pay off secured loans such as a mortgage and cannot be used to pay off court fines. It’s likely to get rid of all other forms of debt however – creditors of these debts are no longer allowed to chase you up and you can enjoy freedom from these debts. You can find more information about bankruptcy here.
Debt settlement plans
A debt settlement plan is an alternative to bankruptcy that is often slower but less damaging in the long run. It involves individually negotiating with creditors to wipe debts, usually by paying a large sum upfront. This could give you the freedom to keep your assets while also reducing the damage made to your credit score.
There are debt relief companies that can help you negotiate with creditors and wipe debts. It’s worth using this professional help if you’re not comfortable negotiating yourself.
Other forms of debt relief
There are other forms of debt relief out there that can be worth looking into. Banks may be able to offer individual forms of debt relief. Meanwhile, Debt to Success System programs can help you to escape debt by separating yourself entirely from banks if you find banks to be a scam. Always use a professional and legal service.
What you shouldn’t do…Action!
Some people try to eliminate debt by simply ignoring letters and not letting the bailiffs in. Others go to elaborate lengths such as moving home and changing their name to escape debts. In all these cases, the debt doesn’t go away – you are simply running from it. It catches up with most people in the end and the negative impact can be far more serious (changing your name to escape debts could be classed as fraud).
PS Hope this was informational ?!
Stanley
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