Are you afraid that you might have to close shop because of the high debts accumulated, agonizing phone calls from creditors and never ending business and personal expenses? You aren’t alone and like most of the people who have made it to the other side successfully, you must be willing make some changes and adopt some debt management strategies.
There are variable debt relief options but the most common and most effective alternatives include:
Debt consolidation
Perhaps you have heard about this alternative severally but are unsure about how to go about it. First, debt consolidation is a debt relief plan that involves taking up a loan to repay all your other accumulated loans and debts. As a result, you will have one debt consolidation loan to deal with monthly rather than multiple loan repayments that can be forgotten, accruing high penalty fees.
A debt consolidation is taken in the form of a secured or an unsecured personal loan, a home equity line of credit, or as a second mortgage. The best debt consolidation loan plans given by top debt consolidation companies around are affordable and lead to high savings at the end of the repayment period. To get such deals for affordable plans, you have to research carefully both online and offline.
Credit counselling
Did you know that with a few major or even minor adjustments in your spending, you can be able to repay your debts comfortably and fully? However, to do this effectively, you may require an extra set of eyes in form of a credit counsellor. The best credit counsellors and counselling institutions offer excellent tips on budgeting, debt management, and money management. These organizations will make you aware of your financial issues, hence helping you plan your personal and business finances better.
Debt management
If you reach out to a credit counsellor with your financial issues, one of the alternatives that will be given to you is debt management. Debt management is often offered by certified credit counsellors and by extension, some of top debt consolidation companies.
Under this plan, your finances will be analyzed and you will be required to deposit a certain amount of money with the debt consolidation agency monthly. The counselling agency will go ahead and pay your creditors. Often, your credit counsellor will come to an agreement with your creditors in regard to the payment schedule. Before signing any documents, make inquiries on the debt repayment duration as well as the existence of any prepayment penalties.
Debt settlement
In this program, a debt settlement agency negotiates with your creditors for a one-off settlement plan so as to resolve your debts. If agreed, you will be required to put aside some money every month with the debt settlement company. Once the lump-sum figure is attained, the company will pay off the creditor. In this plan, you don’t have to deal with your creditors directly.
Bankruptcy
When your financial state is unable to pay off the debts and sustain your company, you may have to file for bankruptcy. Though this option taints your credit for about a decade, it is often considered the best way to start over. Talk to a professional to determine the best option.
In conclusion, being deep in debt is a stressful thing to your business and you as a person. Choose the alternative that will ensure continuity of your business or generally, what is best for you. You shouldn’t fall for scams and you should read the fine print to avoid the fees and penalties that you can avoid.
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