There comes a time in many of our lives where we realize we are in over our heads, financially speaking. Maybe it was due to divorce or the end of a relationship leaving us single parents--with more money going out than coming in. We come to the conclusion we need to do something about our debt, but what?
There are several options when it comes to debt relief and one of them is right for you, your situation, and your family. Making the decision to tackle your debt head on is never easy, but you do have options. Let’s take a look…
· Do-It-Yourself with Debt Payment Pro. Debt Payment Pro is a FREE tool that can help you pay down your debt. Enter simple information about your debts. Based on your debts Debt Payment Pro will calculate your possible savings. Then follow your personalized repayment schedule to pay off your debt more quickly and save on interest. It can become easy to send just the minimums and not reallocate payments to other creditors. This approach will require discipline and close attention to your payments.
· Debt Management Plan. Debt Management Plans, which are often called DMPs, are plans that allow debt relief providers to work directly with creditors to secure benefits. These benefits, which vary by creditor, typically include reduced interest rates, lower monthly payments, and waived fees such as late fees and over the limit fees.
· Debt Settlement Plan. Debt Settlement is an attractive alternative to bankruptcy for those who want to pay back at least a portion of their debt, but cannot afford the Debt Management Plan payment, and have stopped paying their unsecured creditors. With Debt Settlement, you make monthly deposits to a Settlement deposit account in an amount you can afford. You do not make monthly payments to your creditors, and your provider works to negotiate with your creditors for a less-than-full repayment. When settlements are reached with creditors, settlement payments are paid from the Settlement deposit account. There are definitely pros and cons to using Debt Settlement to pay off your debt.
· Bankruptcy. If your financial situation leaves you unable to pay back even a portion of your debt, you may want to explore whether a bankruptcy makes sense for you. We will review your situation and if bankruptcy appears to be appropriate, we will connect you with a national law firm to help walk you through your bankruptcy options.
Still not sure or need help deciding? Please feel free to contact us to speak with a Certified Credit Counselor who can help.
Suzanne is a certified credit counselor and a Social Media Specialist for CareOne. Suzanne writes for Divorce, Debt and Finances and A Straight Talk on Debt blogs. Follow Suzanne on Twitter where she shares the latest debt industry news and tips to keep your finances in check with her ADivorcedMom and AskCareOne accounts.