Options for Getting Finances Under Control

Those who are having trouble with unpaid loans may be realizing that the New Year is a great time to get the debt help that is needed to take control of their financial situation once and for all. There are different tools available that can change the terms of a loan and the amount of money owed. Here are three options to consider when planning to turn over a new leaf.

Debt Consolidation

Those individuals who have multiple credit cards or unsecured debts are more than likely also paying several different interest rates. Debt consolidation allows a person to take out one larger loan in order to pay off the smaller ones. It is ideal to find an option with a lower interest rate that gives a more manageable monthly payment. A professional can help review the options and find the best route to take in this situation.

Debt Settlement

In situations where a person’s credit score has taken a hit due to late payments and unpaid loans, debt consolidation might not be an option. This is where debt settlement comes in. This is where the lender agrees to accept a payment that is less than the full balance of the debt in exchange for one large lump sum payment. A debt settlement professional can negotiate on their client’s behalf and help work out the details to get the best deal possible.

Bankruptcy Route

As a last resort, especially when there is an insurmountable amount of debt, bankruptcy can be an option. When filing for Chapter 7 bankruptcy, debts are usually discharged within months, but assets can be seized to pay creditors. Then, with Chapter 13, assets are better protected, however, the person filing has to follow a three to a five-year repayment plan. Then the remaining debts are discharged. There is a lot of paperwork involved and legal activities. So, it is a longer process.

Those who are ready to get a handle on their financial situation and lower their monthly payments can reach out to Debt Consolidation USA. To get more information or to do a quick calculation online of a savings estimate, view this website today. They have a 100% satisfaction guarantee.

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