Drowning in Debt? You’ve Got Options

September 11, 2009 by AMA Lifestyle

(AMA) – Has job loss or a major medical expense made paying off your credit card debt seemingly impossible? If your credit card bills keep piling up, it’s easy to feel completely overwhelmed.

“If your debt is worrying you, you’re not alone,” says Ethan Ewing at Bills.com, an online resource for saving money and getting out of debt. “While there are no quick fixes, there are some steps you can take to start down the road to becoming debt free.”

The first option that Ewing recommends to people facing a financial hardship is to consider debt settlement. “Debt settlement, also known as debt negotiation, is an aggressive program for reducing consumer debt to the lowest level, typically with a low monthly payment,” says Ewing.

This is an aggressive approach for those in financial hardship that can reduce your debt up to 50 percent. You’ll need assistance from a financial professional to figure out the best course of action for your particular situation.

Another option that could help for those with debt problems is a debt consolidation loan.
Ewing explains, “When someone consolidates debt, they take several of their debts and loans and merge them into one. Your payment term will usually be extended, and your payments and interest rate could be reduced. Debt consolidation has a minimal effect on your credit if you make your payments on time.” Ewing goes on to point out that debt consolidation loans can be hard to come by in light of tighter underwriting guidelines from banks.

Credit counseling is another service you can consider for getting out of debt. Credit counselors help you review your debts and suggest an appropriate solution. If you are paying the minimum on several credit cards, it might feel like all your money is going to interest and none to your actual debt. “Credit counseling professionals can help you achieve a lower interest rate so that although you are paying back the full amount of debt, the interest portion will be less,” says Ewing.

With these alternatives, it’s often not necessary to file for bankruptcy. Bankruptcy carries a negative stigma and other options should be considered first to correct your debt problems.

The bottom line is, you can become debt-free with the right course of action. Visit www.USADebtHelp.com to get all the information you need to make the best choice and get out of debt.

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