If you are deep in debt and struggling to get out of it. There are high chances that the idea of declaring bankruptcy has already crossed your mind. After all, you are searching for it that leads you to this article. There are many other options to solve your debt-related problems without the need to declaring bankruptcy, There are methods such as debt relief plan or IVA debt restructuring that can help you to solve your problems only if they suit your situation. In this article, I have researched some tips for you to solve your debt-related problem without the need to declare bankruptcy.
1)Consolidate your debt
Debt consolidation is a popular way to deal with the troubling debt situation. There are many agencies and companies that offer debtors for debt consolidation loans to pay their previous loan. By using this method you would be able to pay almost all your previous loans with the help of a consolidation loan. However, You would have to pay the same amount of loan to your consolidation agency with lower interest rates that can help you to solve your debt trouble without going bankrupt.
2)Balance transfer
A balance transfer is to transfer the amount of debt from one credit card to another credit card. Debtors usually transfer their balance to a credit card that offers lower interest rates than the previous credit card. Transferring your interest rate to a credit card with a lower interest rate can save you some money. But make your calculation before taking this step because transferring your balance will also cost you some money.
3)Debt management plan
A debt management plan is offered by companies to help you get going with your finance. These companies negotiate with your creditors for lower interest rates. Once you have acquired a debt management plan form a company then you will only have to make a single monthly payment to your company and they will deal with your creditors on your behalf. A DMP requires discipline from the debtor, If the debtor misses any payment then the company can cancel the plan and the creditor may refuse to deal with on your debt restructuring agency.
4)Debt settlement
Debt settlement is done by proposing a lump sum amount of debt to your creditors before declaring for bankruptcy. Its main option is to offer an amount of money that a debtor is able to solve in that situation.IF the creditors agree to take the amount then the settlement is done and the debt would not have to declare bankruptcy.
Conclusion.
The finance should be handled very carefully but if somehow there is a situation and you are considering to declare bankruptcy then make sure you have taken advice from a debt consulting company to make you aware of some other option such as DRP debt relief plan or Iv debt restructuring. These options can help you to be safe from bankruptcy and solve your debt problems.
