Nov
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Debt Management- Making Your Life Stress Free
November 22, 2008 |
Do you wake up every morning to a “debt rise” rather than a sunrise? Are you leading a stress filled life with no peace? Read on and put a full stop to all that debt which is overpowering you…
Have you considered debt settlement? Well if you are desperate, you better start thinking about it. There are plenty of debt settlement companies who would be more than happy to offer you a quick fix method for you to halve your debt overnight! Debt settlement companies usually try to persuade your creditors to accept either a lesser payment or maybe even no payment at all. But a major con of this method is that, your credit rating will fall into the pits. So it’s advisable not to go for this method unless you are extremely desperate.
On the other hand, credit counseling might be a better option for you. Go to your nearest credit counselor and give him/her a brief idea about your debt situation and about how you find it difficult to settle your debts. Your counselor will then meet your creditors and lay out a debt management plan. This will help you get lower interest rates on due amounts or maybe even lower payments. Creditors want SOMETHING from you rather than NOTHING at all.
If there’s a large gaping hole in your credit file, go for debt consolidation. The essence of debt consolidation lies in taking a bank loan and using it to pay off all your other debts. This way you make one small monthly payment to the bank and they will apply that money to your creditor (who most probably will accept lower monthly repayments). The drawback lies in the fact that you may have to secure this loan against a major assent, such as your house. The pro is that you’ll therefore get a lower interest! What more, you just have to make ONE MONTHLY payment which will make you feel less psychologically pressurized, compared to 10-20 monthly payments. On the other hand, you may have to pay much more in the long run compared to what you may have paid, if you had settled the debt within a few months. This is because the payment is stretched over a longer period of time. And if you miss a payment, you may be living on the sidewalk right outside your house!
Don’t worry too much about the cons of debt management; just start focusing on the happiness you are going to get as soon as you start effectively managing your debts…
Bizymoms.com has been helping provide moms with information on everyday matters and important issues. Now they have partnered with Freedom Financial Network to better inform moms about debt relief options.
Article Source: Debt Management- Making Your Life Stress Free
