If you find yourself in a position when paying the bills every month is becoming more and more difficult and you have no idea how to make ends meet, then do not worry as you are not alone. As the cost of living spirals many people's income does not increase, leading to a deficit in the bank account or on the credit card, which each month gets bigger and bigger as you end up just paying the interest off each month and nothing more.
It probably feels like there is no way out of this black hole and that bankruptcy is
looming, but the good news is there is. In fact there are several options open to you, including debt management plans, debt consolidation or bankruptcy. Although each method is not likely to suit every occasion and circumstance, the variety gives you the ability to choose which is the right way forward for you.
Finding a good debt consolidation company to give you expert debt advice will help you decide what the best options for you are. Bankruptcy is usually the last option but you may decide after careful debt advice and considering your debt management plan that it is the least stressful and most manageable path to take.
The first task to be considered before even considering the bankruptcy route is to look at
your current finances in detail and see if it is possible to put together a debt management plan. The best debt management plan may be to consolidate all your debts onto one loan and hence pay it off at a slower rate but with less interest per month. It does take longer to pay off with this method, but your monthly payments will be less and you will not be on any credit default lists, as long as you continue to pay off each month. However, you will probably pay a little more for your debt in the long run.
Receiving good debt advice will probably mean that you conceive a debt management plan that you and your creditors agree to, that allows you to pay off your debt on a monthly basis at a fixed rate that is achievable. Creditors will often freeze the interest in this case, in order to help you clear the debt. If you go bankrupt a creditor is less likely to see any money returned so this is a more viable option for them and the benefit to you is that the debt is completely cleared after a certain timescale.
Each case is different and will be considered on individual merit. The important aspect when in dire straits financially is to take action and get debt advice from a reputable company that knows the score and is there to help you become debt free. And if bankruptcy is the best choice for you then rest assured within a few years your financial life will be back on track.
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