Technology has made knowledge readily available to the end user. Certainly, the time involved in expanding and enriching domain of knowledge has reduced. Earlier Debt was understood as a curse, but now with the gathered and assimilated knowledge the interpretation of debt management ideas have been explored instantaneously.
The mode through which you can gather all information about debt management is credit counseling agencies. These agencies bridge the gap between known and unknown, simple and complex debt management plan, in a meaningful manner.
Here are 6 Debt Solutions to get rid of credit card and other bills
Debt Consolidation- It is one of the prominent ways to reduce credit card and other bills. Credit Cards are like albatross placed on our neck designed to drag us down. In such a case, debt consolidation program consolidates all our debts into single repayment plan. You need to make single consolidated payment to your company, which in turn distributes the amount to your creditors.
Debt Settlement Plan- Debt Settlement Plan is just like any other debt management program that assists you in resolving your debts. You'll have to pay fixed sum to your debt settlement company. The accumulated amount is paid to the creditors. Many debt management companies proffer these plans, but with every plan you need to consider risks and benefits.
Debt Management Plan- Debt Management Plan includes credit counseling session wherein your credit counselor analyzes your debt and finances. He prepares a monthly budget for you, so that you can save some money on your credit card bills. Good debt management companies are indeed the backbone of economy.
DMP negotiates with your creditors in order to negotiate interest rates and to trim down late fees.
Self Repayment Plan- Self Repayment Plan is meant for all those individuals who are self reliant and have unshakable belief in themselves. They don't rely on credit counseling or any other debt management companies albeit they devise a plan for themselves and strictly follow it.
Budgeting makes their plan successful.
Bankruptcy- Bankruptcy is no doubt one of the best solutions to your debt problem. But this option should be considered as a last resort because it hurts your credit rating. It can bring your score to 200 or less. Hence, it is necessary to explore other options.
Ostrich Method- It is the most risky method because in this method you don't take your debt seriously. You ignore it in a hope that it will wane away with ravages of time. However, it is advised not to ignore your debt problem, as it may lead to dire consequences.
In nutshell, debt plans are not a trap, but they are there to help you. To maximize potential of any method, you need to view your circumstances. For instance, debt consolidation method is not suitable for people who are suffering from financial hardships.
Also, debt consolidation method can cost you more in terms of time as well as money.