Eliminate Your Debt, Reclaim Control
If you deal with considerable amounts of debt, you may be contemplating ways to eliminate your debt. Doing so would yield obvious benefits, but the methods are not always readily available to most or even made common knowledge. While there are multiple ways to handle your debt, there are four main methods of debt elimination that can help you eliminate your debt.
Eliminate Your Debt with Debt Consolidation
Debt consolidation can help you to eliminate your debt with the use of one big loan to pay off debt. If you hold multiple debts, a debt consolidation loan can satisfy your obligation to each of your creditors while leaving you with just one debt to focus on. The main benefit to debt consolidation is the ability to trade many debts with their respective parts (due dates, interest rates) for just one main debt. Having only one debt can help you stick to a payment plan, avoid late fees and improve on your credit while you eliminate your debt.
Eliminate Your Debt with Credit Counseling
Credit counseling does not directly impact your debts, but it does help you to better understand what you need to do to eliminate your debt. A credit counselor is assigned to you to help break down your financial situation and give you the best advice on how to eliminate your debt. In certain situations your credit counselor might suggest a debt management plan for a particularly troublesome debt. This will allow you to make payments on the debt while avoiding negative aspects of debt, like interest fees.
Eliminate Your Debt with Debt Settlement
You can eliminate your debt through debt settlement companies. These companies can attempt to negotiate with your credit providers on your behalf, looking to lower your overall debt and save you some money. As a part of a debt settlement program, you would make payments into a special account, eventually accumulating enough to make a payment for settlement. This can help to eliminate your debt at a quicker pace than with other forms of debt relief.
Eliminate Your Debt with Bankruptcy
Widely regarded as the last resort to eliminate your debt, bankruptcy also has the best chance of completely ridding you of your financial obligations. Unsecured debts have the ability to be discharged in full through bankruptcy, allowing you to eliminate your debt in a quick and effective manner. The main downside to bankruptcy is the fact that it stays on your credit record for up to 10 years, hindering you from applying for new lines of credit and lowering your credit score in the process. Be absolutely certain of your options when looking to eliminate your debt.