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Where to Turn for Debt Help

Article by Simon Volkov

A lot of people are in need of debt help, but most don?t know where to turn. In today?s economy, millions of Americans are struggling to make ends meet. They are overwhelmed with mortgage debt, maxed out credit cards, student loans, car loans, and medical debt.

The type of debt help solution depends on the type and amount of owed debt, as well as overall debt-to-income ratio. Strategies can range from developing a household budget to filing personal bankruptcy.

The Internet can be a good source for researching ways to overcome financial problems. However, it is best to consult with a credit counselor, financial planner, or bankruptcy lawyer to develop solid get-out-of-debt plans.

Credit Counseling

Credit counseling can be advantageous for consumers who are facing foreclosure or bankruptcy. Credit counselors can review current finances and help debtors develop financial plans. Counselors also provide money management skills to help debtors prevent future problems.

Individuals who are considering filing bankruptcy will benefit from entering into counseling through an agency approved by the U.S. Trustee. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require all petitioners to enter into credit counseling.

Entering into counseling through an approved agency allows debtors to meet BAPCPA requirements should they need to file bankruptcy at a later time. The new bankruptcy laws let debtors enter into counseling a maximum of 180 days prior to filing their petition.

Budgeting

Budgeting is an affordable debt help solution, but requires a high level of self-control. The goal of budgeting is to spend less than is earned. The key to success is developing a household budget that is realistic.

Debtors earning less than they spend must find ways to either increase income or decrease expenses. The biggest budget-busters are often impulse buys. People are often unaware of how much they spend on inexpensive items. However, these little expenses can add up quickly and destroy budgeting efforts. A simple way to assess personal finances is to write down every penny spent for an entire month.

Creating a budget isn?t hard to do, but sticking to it can be challenging especially when unexpected expenses arise. Those who are struggling to meet mortgage loan obligations may find it helpful to enter into a loan modification or mortgage refinance. A good source for obtaining help with home loans is Obama?s Making Home Affordable program.

While most people can?t change housing costs without altering mortgage terms or moving into a cheaper rental home, there are other areas where expenses can be slashed. Utility companies offer budget plans that allow people to pay nearly the same amount each month. Telephone and Internet providers offer bundled packages to help subscribers reduce overall costs. Food manufacturers and restaurants offer discount coupons to reduce food costs.

Debt Consolidation

If budgeting isn?t sufficient, debt consolidation might be an option. Consolidation is usually reserved for homeowners with accrued home equity. This strategy requires homeowners to take out a home equity loan using real estate as collateral. Careful consideration must be given when using real estate as collateral. If homeowners default on their home equity loan they can place the property at risk for foreclosure.

Debt Settlement

Lastly, debt settlement can help consumers overcome financial problems, but careful consideration must be given when entering into this strategy. Debt settlers enter into negotiation with creditors to reduce principal balances, interest rates, or write-off late fees and penalties.

Unfortunately, many debt settlement companies are under investigation for consumer fraud. Those who choose this debt help option must conduct due diligence to ensure they are working with a reputable and licensed business entity.

About the Author

California real estate investor, Simon Volkov has written extensively on topics of money management and personal finance. He shares an extensive debt help resource center focused on debt elimination, budgeting, and personal investing. Discover strategies to become debt-free at www.SimonVolkov.com.

Related posts:

1. Is Debt Settlement Better Than Bankruptcy?
2. How New Bankruptcy Laws Forever Changed Debt Relief Options
3. Consolidate Debt: Solutions for Reducing Personal Debts
4. Debt Relief Help ? a Debt Management Guide That Can Bring You Significant Relief
5. Need Help Getting Out of Debt?

Source: http://studentloandebtsupport.com/where-to-turn-for-debt-help/?utm_source=rss&utm_medium=rss&utm_campaign=where-to-turn-for-debt-help

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