If you’re a regular reader of the Project Debt Relief blog, then you know that we focus the majority of our attention on explaining the ins and outs of debt relief solutions. With that said, today’s post is not an explanation of any of the five solutions discussed below. Instead, it is a look at each of the five and an explanation of who they most benefit.
If you’re struggling with debt, then this is an excellent starting point to find a solution that works for you. If you find a description matching you under one of the solutions listed below, then that is a great jumping off point for more research into that particular solution. We hope that this list will help you find your best relief solution fast and with a minimum amount of hassle.
Debt consolidation is one of the best solutions that there is. It is a particularly solid option if you:
- Are struggling with credit card debt.
- Have to make multiple debt payments each month.
- Would like lower interest rates on your monthly payments.
- Have set a goal to eliminate debt rather than open up new lines for credit.
If this sounds like you, then you might just find that debt consolidation is your best solution. It can help by combining multiple monthly payments into one making things easier to organize and keep track of. Furthermore, having a single payment can often mean lower interest rates thus saving you money each month.
Debt settlement is another very effective debt relief solution depending on your particular solution. It works well if:
- You are struggling with more than $7,500 worth of debt.
- Your debt is one of these types: major credit card, department store card, personal loan, medical bills, or credit unions.
- You cannot afford to pay your minimum monthly payments.
- You are seeking an alternative to bankruptcy.
Though debt settlement can leave a serious scar on your credit report, it is also a surefire way out of debt if you meet requirements. It is, in many ways, a good solid alternative to bankruptcy.
Credit counseling is yet another stellar solution. It is particularly effective when:
- You are looking for a long-term solution to your debt problems and are seeking education rather than a quick fix.
- You have more expenses than income and want to create a solid budget plan.
- You would benefit from a debt management plan with lower monthly interest rates.
If this sounds like you, then credit counseling could just be the solution that you are looking for.
Debt management isn’t the best solution for everyone but, like all the others on this list, it can, depending on your personal situation, be all the help that you are looking for. Debt management is a good bet for you if:
- You can’t afford to make your regular debt payments.
- You have a number of different debts and payments that you are trying to keep organized.
- You are sure that you’ll eventually be able to pay off all of your debts in total.
Yes, debt management is definitely something worth considering when you are looking to reduce and eliminate your debt.
Most people view bankruptcy in a negative light but it can sometimes be the only solid debt relief solution around. When considering bankruptcy, keep in mind that it is not quite as simple as going to court and getting your debts erased. There is more to it than that. However, it can be a good option if:
- Your debts are not too high. For Chapter 13 bankruptcy, for instance, your secured debts must not exceed $750,000 and your unsecured debts $250,000.
- You must have a stable income and regular income.
- You should have tried other debt relief solutions first before going with bankruptcy.
Bankruptcy can be a good solution but you should talk with a bankruptcy counselor before making any final decisions.
There certainly are a lot of solutions out there. They all have their own advantages and disadvantages. What works well for you might not work well for me. The key is finding the solution that best fits your personal needs and situation. Hopefully the above information will help you in sorting out a few of the most common solutions so that you can find the one that will get you out of debt once and for all.