Get Out Of Debt - What Are The Best Proven Methods To Get Out Of Debt?
Repayment of debt is the best way to get out of debt
. This is the safest, simplest and the most effective method. However, it is also the most impractical solution. If you had sufficient money to repay all your debts in full, you would not be here right now reading this. Further, there are many better uses of your money than repaying all your debts in full. It is illegal and immoral to skip repayment of the amount you owe. However, there's nothing wrong in asking the lender to offer some discount when you have paid a lot of money in the form of interest.
One debt settlement relief option that is very popular now is settlement of debt. This option is used by those who do not want their creditors to suffer by declaring bankruptcy. The debtors and the creditors come into an agreement where by the amount owed is reduced by as much as fifty to seventy percent. Their remaining amount is to be repaid over a period of twelve to twenty four months. This option is usually reserved for those who are at the brink of financial collapse.
Debt consolidation is suitable for those who have racked up too many credit card debts and other unsecured loans. Rather than handling multiple loan accounts at the same time, it makes sense to consolidate debts by opting for a single big loan to repay all other debts. Lump sum payment is enough to secure a small discount from lenders ranging from five to ten percent.
You can now mortgage your home equity to convert the unsecured loan into a secured loan. You can use this option to ensure only two alternates are left- your home mortgage loan and your home equity loan. Both these loans shall be secured on your house and this relieves your other assets of liabilities and obligations. This is suitable for those who own more than one property. The equity in one house can be mortgaged to secure home equity loan while the mortgage on the other house or houses can be repaid over time.
If you are over $10,000 in unsecured debt it would be wise to utilize a debt relief network instead of going directly to a debt settlement company. Using a debt relief network guarantees that the debt settlement company you choose has been certified and has established success in negotiating settlements. They are free to use and a good starting point to begin your debt relief process.