Tuesday, April 22, 2008

Debt Consolidation: Easing the Burden

There's no doubt that while having a certain amount of debt is normal and a way of life for most of us who live in North America, some of us have gone over the line where we can pay back what we owe in monthly payments. Before any further discussion of this unfortunate situation can take place, it’s necessary to note the facing a debt burden is something that can happen to anyone. It’s not just the people who don’t know how to manage their money that can get into trouble, but those unfortunate ones among us that are faced with the loss of a job, a family illness, or a host of other unexpected circumstances that find themselves falling behind.

Types of Debt

It matters what kind of debt you have, and as you might have guessed, there are several different kinds although most of the debt that the average person finds themselves facing is what’s called unsecured debt. This includes the one that most of us struggle with in one way or the other—credit card debt. As well there are those unpaid student loans that have a way of gathering interest like a stone rolling down a hill gathers moss, and tax debts as well as medical or legal bills that have gone unpaid.

It happens more and more that people find themselves unable to see over the mountain of debt that they’ve created for themselves. Most of them are good people who would love nothing better than to find a way out and there’s help out there. Debt relief agencies like?Delray Credit Counseling?are experts at studying people’s individual debt circumstances and then helping them find a way out.??

What to Do About It

?The best option is to speak to a professional that can help. A certified debt counselor is the right choice. Professionals like those at http://www.delraycc.com are the people that can listen to your situation and help you find a plan to get you back on track. To start, all you need to do is apply to a local debt consolidation program—they are either usually private or non profit agencies that will supply a free quote on the time and interest that will be required. It’s really quite simple and once a plan is in place, you stand to save a substantial amount of interest on the payments and shorten the time it will take to pay the money back. The debt consolidation company that you select works with your creditors to design a repayment method that will both satisfy them and start you back on the road to financial freedom.

There’s a good reason that this is the best option and it’s simple. By consolidating you debt, you avoid having to claim bankruptcy. While bankruptcy does erase many of your debts, it does not take away some of the ones that can swell to large proportions like child support payments and student loans. As well, once you’ve filed either the Chapter 7 or Chapter 13 versions of bankruptcy, you credit rating is affected for up to ten years and you will find it considerably more difficult to get a personal loan, a mortgage or even a job.???

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