If you're facing an overwhelming amount of debt, you're not alone. Half of American families are living paycheck to paycheck and are unprepared for a financial emergency. One illness or change to income can push you to the brink of financial ruin.
It's important that you prioritize paying off debt so that, should an emergency happen, you have disposable income that can be used to keep your family afloat. That being said, there is good news. Consumers have many options ro relieve the burden of debt. Here, we outline 8 of the most common strategies for resolving debt so that you can determine which is the best choice for your situation. With each option, it's important to evaluate your unique situation and remember that results vary.
Make a single monthly payment for a predetermined term. A company then negotiates with your creditors to settle for less. The settlement and fees are paid with the funds from your monthly payments.
After six or more months enrolled in the Financial Service Consultants program, clients can qualify for an unsecured loan to pay off all of the accounts at our settled rates. The Takeout Loan combines the benefits of a consolidation loan with our new reduced settlement offers.
A retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes are not paid until the money is withdrawn from the account.
A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses.
HOW IT WORKS
Through budgeting and discipline, and the use of tools, you can start making the necessary payments to repay your debt.
PROS
CONS
A counselor will review your situation, help you budget, attempt to lower interest rates and create a management repayment plan.
Consolidate your debt into one loan to pay off all of your debt, ideally with a lower interest rate and affordable monthly payment.
A legal process to relieve you of your debt obligations. Chapter 7 and Chapter 13 most common bankruptcy types used by consumers.
After six or more months enrolled in the debt resolution program, clients can qualify for an unsecured loan to pay off all of the accounts at our settled rates. The Takeout Loan combines the benefits of a consolidation loan with our new reduced settlement offers.