subject: Out Of Debt - No Easy Tricks [print this page] There is no fast way to get out of debtThere is no fast way to get out of debt. There's no 60 second plan. There's no magic trick, no snap of the fingers or a genie in a bottle who will come to the rescue. And the worst part is that it can take longer to get out of debt that it took to get into debt. Many consumers are feeling the debt pinch these days because of a weak economy that has taken jobs, created a loss of income, and it was unforeseen by many.
When a consumer first starts to realize that debts are not only mounting up, but monthly payments are impossible to make, panic sets in. By this time, it is often too late for simple solutions like cutting up credit cards, canceling accounts and stopping all convenience spending. Quite often, credit card companies are more than happy to stretch out the payment of balances. The interest rates they make over a long period keep their profits coming in so they'll oblige the consumer who wants extensions. But if the total amount that will ultimately be paid is looked at, the consumer realizes quickly that it is no way to get out of debt. It's making debt last longer.
To really get out of debt, a person has to buckle down and get into a program that can help them resolve what's outstanding and to rethink the habits that got them into debt in the first place. Nothing else will be successful. Even then, there are debt relief methods that seem good on the surface, but actually aren't. Take debt consolidation loans. It seems sensible to roll all unsecured debts into one monthly payment, which is made by securing a loan. The problem is that consolidated loans are secured. That means collateral is put up, and it's usually a home or other expensive property. If a consumer defaults on the loan or ends up not being able to make payments, the property will be seized. Other forms of debt relief may be much more advisable to get out of debt, and stay out of debt.
Debt settlement and debt management are two methods, and they are similar yet different. One works well for those with a steady stream of income, while the other works better for those who have suffered circumstances like a loss of job, a divorce or major illness. These are both viable solutions for those who think that bankruptcy might be their only way out of debt.
Getting out of debt and staying out of debt is tough, and it takes a concerted effort, and often can't be accomplished without professional assistance.
by: Vicki Hall
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