Personal Debt Management

     In todays world, the words Debt Management are something almost everyone understands. Unfortunately, the thoughts that relate to the word debt tend to be negative instead of positive. This is where the Management of that Debt becomes an important part of our lives. If you find yourself struggling to make ends meet or you find yourself living paycheck to paycheck this inforamation is for you.

     Depending on your situation, there are four increasing levels of Debt Management. The four levels are:

1. Self Help (Budgeting)
2. Debt Consolidation
3. Consumer Credit Counseling
4. Bankruptcy

     Which of these four levels fits your needs is something only you can determine. Keep reading to learn more about each one of these options.

Self Help (Budgeting)

     The best option and usually the most difficult is to establish your our Debt Management system. This tends to be the most difficult option because it is completely self disciplined and realistically if we had the discipline to start with we wouldn't be struggling with our debts.

     Regardless, if your making enough money to pay your bills, are not behind on payments, but can't seem to get out of debt, this option might be for you.

Click here for more information on Self Help Debt Elimination

Debt Consolidation

     If you are a home owner Debt Consolidation is an option for you. With a debt consolidation loan you essentially add your current debts to your home loan. This generally lowers the interest you pay on your debts, however is raises your mortgage payment.

     This option is really for the person who has more than enough equity in their home to cover their debts and meeting the higher monthly mortgage payment obligation will not be a problem.

Learn more about Debt Consolidation here!

Consumer Credit Counseling

     If your like most of us sticking to a budget you've created is what got you into trouble to start with. Therefore, the chances you can create and stick to a new budget that is considerably more strict is not likely. This is where Consumer Credit Counseling comes into play. In short, these companies establish a budget for you and negotiate a repayment plan with your creditors to get you out of debt.

     Consumer Credit Counseling is a great option for someone who is struggling to make the monthly minimums and perhaps has fallen a few months behind on their payments.

To learn more about Consumer Credit Counseling click here!


     Your last option for debt management is Bankruptcy and I do mean last option. Bankruptcy laws vary depending on state and there are several type of personal bankruptcy filings but the overall result is the same. Bankruptcy, can relieve you of many of your obligations to your creditors. In other words, you may no longer have to pay your creditors the money you owe them.

     On the surface this seams like the best solution, but there are serious consequences related to bankruptcy. For example, the effect on your credit report is very negative and many lenders will not loan you money until you have proven your stability over time.

     As a result, bankruptcy is the right debt management option only for you if you are seriously behind on payments and find yourself still struggling to make ends meet. For you, bankruptcy can be a fresh start!

Learn more about personal bankruptcy here!

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