Two Ways of Dealing With Debt

If you are one of the millions of Americans struggling with debt, rest assured that there are several ways to facilitate your struggle thought the tunnel towards the light. Today there are hundreds of companies which specialize in helping people in these situation. In the following segment we will be talking of two solutions to a debt free life.

Solution One: A Debt Management Program.
These are designed to work with your creditors to provide you with more affordable monthly payments. This provides the ability to continue a good standard of living while continuing to make your payment toward a debt free future. The downside is that since the payment amount drops, the time it will take to be debt free will increase.
This solution is typically more suitable for those who are under $14k in debt, if not the next solution might be more suitable.

Solution Two: IVA (Individual Voluntary Agreements)
IVA's were introduced as a more palatable solution to bankruptcy for people who fall into the high level of debt category. An IVA is a legally binding contract between you and your creditors in which you agree to make a set of affordable payments for 60 months to your IVA, in turn your creditors will write off the difference owed. It is however crucial that you fulfill each payment as on time as possible in order to avoid bankruptcy.

These are only two solutions that the many companies offer. Where there is a will there is a way so don't give up your search for solutions to the problem.

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Debt Consolidation Loans. Can They Help?

A debt consolidation loan ties all of your debt into one single managable loan, the payment should turn out to be smaller than all of the natural combined debt. The concept is to free up some money from your budget, while still working to pay off these debts, allowing you to live a more stress-free life.

These loans are typically offered as "secured loans" meaning that the loan is tied to something the borrower owns, using it as collateral. However if you wish to pledge collateral and obtain a "debt consolidation loan" then the best thing would be to opt for a unsecured debt consolidation loan.

The loans can be obtained it terms less than 30 years some even as low as 10 years.

This option I believe to be quite effective if it can be obtained because we must draw into account the fact that credit card companies have the ability to increase interest rate, add late fee's and have yearly costs. With a debt consolidation loan you will be saving money on each of these variables. The lower interest rate and the less expensive monthly payment alone can be a great relief allowing you to enjoy your time plenty more.

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