If you’re struggling with your finances then you might find that the specter of debt is closing in on you fast and that the amount you owe is slowly mounting up. In these cases the silver lining is the number of different options available to you to help repair your financial situation. Fortunately if you are in debt then there are many different ways of getting out of debt and there is sure to be one that suits your particular situation. Here then we will look at some of the ways of getting out of debt – solutions that can help you to manage and shrink the amount of debt you owe.
Bankruptcy: First of all, bankruptcy is one option for getting out of debt. This may seem like a drastic measure but it is more and more considered a viable option. When you declare bankruptcy you will have your debt restructured and in some cases it will be completely paid off by the state. This will of course affect your credit rating however, and you may find that you lose some of your assets in the process unless you use asset protection.
Restructuring: Restructuring your debt is another way of getting out of debt. Here you will speak with your lenders and will ask them if there are any ways they can make your debt easier to pay. Generally this will mean reducing the interest or just changing the repayment scheme so that you pay smaller amounts over a longer amount of time etc. Banks and creditors will be surprisingly helpful when you speak to them about restructuring debt – the reason being that if they don’t help you to pay the debt then you may file for bankruptcy and they would thus end up getting paid less overall.
Transferring: Transferring your debt is a good strategy for getting out of debt. By transferring debt to other lenders it is possible to restructure it and reduce interest. Simply change your debt over from one credit card or lender, and then pay it off there instead. In some cases if there is an incentive for joining – such as 0% interest for the first year – then you can greatly reduce the interest on your debt. Do bear in mind though that there may be a fee for transferring the debt.
Consolidation: Consolidation is another thing that can help you with getting out of debt. Here you basically take out one larger loan and use it to pay off all of your other loans. This gives you just one loan to pay back which can mean a lower APR overall and an improved credit score.