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How To Rid Yourself of Debt in the Least Time Possible

By: Michael Millington

Some debts are more damaging than others, believe it or not. Dependant on the type of debt you have, how long you have had the debt for and your ability to handle the debt. The best debts might tend to be secured, but there is a reason for this. Secured debts require collateral to secure the funds. In some instances the fastest way to rid yourself of these debts is to provide the collateral as payment. However, this also isn’t the ideal form of payment due to the nature of you losing what you put up for your loan.

One method of paying back loans that can help you get out of debt sooner is by taking an aggressive payment approach to it. This might be able to allow a faster form of debt payment that would result in fewer interest charges. Those who are in serious debt and have missed payments might not care about such things, but others might. This is especially important for those who have considered bankruptcy or debt settlement to clear things up. Paying off your debt aggressively has one added bonus over settlements or bankruptcy in that it doesn’t affect your credit at all.

Should you find yourself unable to meet the rigors of aggressive repayment of debt, then considering debt settlement or bankruptcy can be a viable solution. However, the two debt relief options are not one in the same. As many people know, bankruptcy is a last ditch option to eradicate your unsecured debts in one fell swoop. The implementation of a bankruptcy works to legal erase your debts so that you don’t have to pay them going forward. This comes at the cost of your credit score, dropping it by an average of 200 points and placing a bankruptcy mark on your credit record.

As far as debt settlement goes, it might take a bit more time to handle all of your unsecured debts but it won’t stress your credit score for ten years. Debt settlement companies work to reduce the amount of overall debt you’d have to pay to settle your obligation. Most debt settlement companies will cater to your budget by creating a monthly payment plan that will work with your income and other debts. In any situation, you should always do as much research as possible to make the most well informed decision you can make.