Dealing with debt can simply be a financial nightmare. There is never enough money in your account to pay the bills, pay back what you borrowed and provide for your family. You’re constantly faced with this problem at the end of each month. But, there are ways to escape the struggle and get out from under your debt. You can use these fixes to start over, and make a better debt free life for yourself.
This isn’t your first option and it won’t be available to everyone. But it is possible to declare yourself bankrupt. To do this you’ll need a bankruptcy lawyer. They’ll help you show that you simply do not have the money to pay off your debts. You will then use your assets to pay any outstanding debts that you can. This might include your house, your car and any other possessions. In essence, you will be forced into a state of liquidation. You will also be put on the individual insolvency register. This means you won’t be eligible to borrow any money in the future. After a period of 12 months, with the help from your lawyer you will be discharged of your debt and completely debt free. As we said this is the last resort. There are ways to escape your debt before it gets to this point.
While this may sound counterproductive, it actually makes sense once you understand what it involves. First, you must find a loan company that offers interest rates that are lower than what you are paying now. Then, you borrow money from this company and pay off your debt. After that you will still owe money and you’ll still be in debt. But the interest rate you’re paying will be less. You’ll find your debt more manageable by doing this.
Consolidating Your Debt
Debt consolidation is an easy solution and it certainly doesn’t diminish the amount of money you owe. You also need to watch out that the debt consolidation company doesn’t have a bigger interest rate than you can afford. But, putting your debt as one big sum that you can pay off each month, again, makes it more manageable. It’s a possibility that is worth considering.
Reducing Your Bills
This is a small solution to a big problem. But you would be surprised the effect it can have. If you reduce the cost of your home bills, you can find you have more money to pay off your debt at the end of each month. You can do this by simply becoming more environmentally friendly. For instance, not running the tap when brushing your teeth can cut your water bill by twenty-five percent.
Selling Your Assets
Lastly, you can use your assets before you file for bankruptcy. You can sell your home if you own it and sell it quick. There are companies online that will take your house off you at market price. You’ll get the money instantly, and you can use it to pay off your debt with no wait. Then, you can focus on getting your life back on track.