3 Options To Getting Debt Free Yourself

Getting out of debt can be a tough thing to do especially if you don’t know much about the subject.  You may have consider debt relief companies and credit counseling but may not be sure if these programs may be right for you. So in this article I’m going to give you three do it  yourself options to help you get out of debt yourself.

The first option is to look into a do it yourself debt settlement solution.  This option works very similar to what debt negotiation companies do except you will contact and call your creditor yourself.  With this option you will have to stop making payments to your creditors to prove to them you are facing a hardship and can not pay them.  After 90 days have passed creditors will be more likely to make an offer and work with you and if you work out a good deal you may be able to cut up to 50% of what you owe.  The down side to this option is that it will more than likely ruin you credit score which will make it fairly tough to get any kind of loans or credit cards.

The second option to consider is a debt consolidation option.  Now you might be wondering how does debt consolidation work?  With this option you won’t cut down the amount you owe but rather combine all of your debts into one big debt.  The benefit of doing this is that it could lower your interest rate and in some cases even give you a tax break.  For example, if you would combine all of your credit card debt into a 2nd mortgage you would more than likely cut down the interest you owe, and your rate will be fixed not variable which means it won’t move.  On top of that by combining it into a second mortgage you’ll also receive a tax break on any interest paid since it is combined with your home mortgage.

Finally, the last option to consider is a debt snowball plan.  This is a simple plan that can be set up to help you pay off your debt in a much faster way.  How most people try to pay debt off is by paying a little to each debt every month, but with the debt snowball plan you pay the minimum towards each debt and apply all the extra cash flow you were once putting towards all the debts to just the debt with the lowest amount owed.  By doing this you’ll speed up the time it takes to get debt free and better yet not ruin your credit score at the same time.

Lastly, before you consider any of these options take some time to research each one before hand.  In most cases I suggest the debt snowball plan first but if you’re facing a hardship and have no money you may want to consider the debt settlement option.  In the end you can get out of debt if you take charge and put a plan in place.  Are you ready to get out of debt?