Here Are 6 Strategies For Debt Elimination For You To Choose From
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#1 Consumer Credit Counseling
Consumer credit counseling (also called debt consolidation, debt management, bill consolidation etc.) is fast becoming one of the most recommended strategies for debt elimination.
With this strategy a debt counselor works on your behalf to negotiate lower interest charges on your debt (sometimes 50% or even 100% lower than what you are paying now). Your debts are consolidated (this is not a loan however) and you make one payment every month to the debt consolidation company. They in turn make payments on your behalf to your creditors.
Before you say this sounds too good to be true, keep in mind that this is one of the strategies for debt elimination that is a true win win situation for both you and your creditors. By lowering your interest charges your creditors realize that they have a much better chance of recouping the original loan amount. And there's more.
Because many of the credit counselors are structures as non-profit debt consolidation companies, they can write off a large portion of the lost interest charges and benefit from a huge tax break.
#2 Debt Consolidation Loans
If you own your own home debt consolidation loans may be one of the strategies for debt elimination that you should consider.
By taking out a new home equity loan or refinancing your existing loan you could free up enough money to pay off your existing debt.
Often times lenders will even loan you money against your home if you do not have any equity in it.
"But don't I still owe the same amount of money?"
Yes. But chances are that the interest rate on the new home loan will be at least half of what you were paying on the consumer debt. And... the interest on the home loan is now tax deductible. Another break for you.
If this sounds like one of the the strategies for debt elimination that may suit you, you can click here (credit debt elimination) through a debt consolidation loan) for a complete discussion.
This is one of our top strategies for debt elimination if you are carrying a considerable debt load ($5000 or more), already have a very bad credit rating and are considering bankruptcy.
Debt reduction companies can often times negotiate your overall debts (not just the interest) down by 40-50% allowing you to pay off your debts completely for 50 to 60 cents on the dollar.
As well, in most cases you can be debt free in under 2 years and avoid bankruptcy.
If you are interested in possibly using debt reduction as one of your strategies for debt elimination you can get a thorough understanding of this strategy by clicking here (100% debt elimination)
#4 Continue To Do What You Are Doing Now...
We do not recommend that you consider this as one of your strategies for debt elimination for obvious reasons. Unfortunately, the longer that you wait to take action the harder it will be to dig yourself out of debt.
Chances are that a good portion of your debt is credit card debt, with hefty interest rates. If you continue to just make the minimum monthly payments on your cards you are committing slow financial suicide. If this sounds like you click here (credit card debt elimination) to find out what you should be doing.
#5 Do It Yourself Debt Elimination
When it comes to choosing strategies for debt elimination, very few people have the discipline let alone the know how to execute a successful debt elimination strategy on their own. However, if you feel that this is something that you can accomplish we have included a few helpful tips and guides in this article (a do it yourself debt elimination plan).
#6 Bankruptcy
As far as strategies for debt elimination go, this should usually be your last choice after everything else fails. Keep in mind that bankruptcy is not free (there are filing fees and legal fees that can run into the thousands). Also, be aware that a bankruptcy can stay on your credit report for 10 years. Before you consider bankruptcy I strongly urge you to consider Option #3 debt reduction.
I hope at this point you feel that one of these strategies for debt elimination sounds right for you, and more importantly that you take action right now.