5 Steps On How To Solve Debt Problems Without Filing Bankruptcy

By Author: J.J. Yong
Total Articles: 963
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Bankruptcy is quite a serious matter, which means you need to start your life from the baby stage once again! You have not even a cent in your pocket and the only valuable items you have, might be the cloths you are wearing. To avoid bankruptcy due to unable to paying off the debts is quite a nonsense - which means that you spend out of what you can afford! There are essentially 5 steps on how you could solve debt problem without filling bankruptcy.

1. Negotiate with your debt collector

First thing you could do is to communicate with your debt collectors and let them understand you situation or financial hardship you are facing currently. Next, you could persuade the creditor either to reduce the debts amount, interest charged or giving you longer repayment term. If this step fails, try the second step instead.

2. Finding a good debt settlement company and let them handle all

This might be one of the solution, however, there will be a drawback for this, you will need to incurred a cost for such services. If the benefits you received could off set the drawbacks, you could give it a go.

3. ...
... Use of the emergency fund (saving)

This is an optional steps for those who have it, especially for female. As most of the female use the credit cards to buy all the branded cloths, watches or bags, they could now sell them out to funding themselves back. Ladies, you might feel like don't want to let go of the luxurious good, however, if you really are out of money even to eat a meal a day, you really need a second thought. Alternatively, some people might have bought shares or bond, this will be a time to let it go as well, to avoid more losses and yet can pay of the partial debts.

4. Finding a second job or part time

Finding a second occupation might sound tired and you might not have enough time to do so, but there are other things which you could do as part time and yet could earn a certain income from there. For example, for working adults, you always have to drive to the office every morning, well think in the other way, students also need to wake up early and go to the school at the same time as you - you could be a part time school driver and drop them off their school on the way to your office. You could lower down the transportation fees than the other school driver and you can even get a paid for this, won't use up much of your time even!

5. Alternatively

Any other option in getting extra income? Well, there is a small tip here. For those who have their own house and staying alone in the house, you could think off renting out the extra rooms, this might minimize your personal space and freedom, but just think of it as a temporary basis, after you clear off your debts, you will regain what you should have. For those who don't own a house, you could stay with your parents under one roof then, this will help to lower down your monthly expenses by not paying the rental or other miscellaneous charges when you are renting a room or house outside.

With the 5 steps as illustrate above, it might be helpful for those who have the passion to clear off the debts and letting go some of the precious time, personal self and image to do so.
For more information about debt settlement program and debt settlement online, visit DebtSettlementChoice.com.