Are you really eager to pay off your debts? Are you already considering bankruptcy?
Bankruptcy is always the last option in any financial situation. This solution only becomes a choice when all other means have failed; a financial expert or counselor would then advise the party to declare bankruptcy to free oneself of the “hazards” of debt repayment.
Bankruptcy is not the only option. Here are some practicable options to pay off your debt, whether accumulated through credit card debt or through loans or mortgages.
Debt consolidation is an act which involves getting a loan to pay off several debts, thereby having just one debt remaining, which is the recent loan.
Debt consolidation is a wise choice in situations where one has several debts to pay. Most of these debts may come with different interest rates. At such situations, taking a single loan (with a favorable interest rate) to pay off all the debts at once becomes a wise action.
Debt consolidation allows you to pay all the amount owed beyond the minimum and then concentrate on paying back the loan, which becomes your only debt. There are lots of financial institutions that will give out loans with favorable interest rates; you can seek the help of a financial counselor for more assistance.
Target the debts with higher interest rates
If you happen to owe several debts, it would be beneficial to tackle those debts with higher interest rates. As your income come monthly, try as much as possible to pay beyond the minimum amount. If possible, use half your monthly income to pay for a particular debt. Doing this for several months might help you quickly pay off the debts with high interest rates, and then concentrate on the others.
Friends and families
Can you get a wealthy friend or family member to loan you some money? In such situations, no interest rate is attached. This is a very good option. Get a loan of as much money as you can get and pay off your debts; then concentrate in paying back that beautiful friend or family member of yours.
Seek financial counselling
Financial experts or counselors are full of financial tactics of getting through some of the most financially difficult situations. They have learnt these tactics overtime through the experience of helping others. They are in a good position to tell you some of the decisions to take. They will also be able to tell you if bankruptcy is the last resort.
If you need advice on how to best manage your debts, it is best that you seek advice from a debt counselor.