Debt can be a crippling issue when it takes up a large portion of your monthly income and makes it difficult to afford the things you need. If you find yourself in debt, you can take the steps to pay it off. Depending on your situation, you may need to get some help from an outside source.
Loan Forgiveness
One way you can get money to pay off part of your debt is through a loan forgiveness program. If you have student loans, you may be able to qualify for loan forgiveness. One of the most common ways to get your loans forgiven is to volunteer. If you join the Peace Corps or AmeriCorps, you can get part of your student loans forgiven. Depending on your career, you may also be able to get some of your loans forgiven. For example, if you are a teacher, a lawyer or a medical professional, you could qualify for loan forgiveness.
Debt Settlement
Debt settlement is an option that could help you significantly reduce the amount of debt that you owe. With a debt settlement, you negotiate with your creditor to take less money than what you owe. For example, if you owe $10,000 on a credit card, the credit card company might take $6,000 from you to close out the account. This is like getting a gift of $4,000 to pay off your debt. The drawback to this method is that it damages your credit score, since you are not living up to the terms of your original agreement.
Budget Help
One of the best ways to get money to pay off your debt is to cut expenses. If you spend less on other things, this will give you more money you can use to pay off outstanding debt. If you are having trouble coming up with a budget on your own, you can get help from an outside source, such as a credit counseling service. A credit counselor can help you develop a budget that will help you avoid wasting money and contribute more to paying off debt.
Selling Property
When you have serious debt problems, you should consider selling property to come up with extra money to pay it off. You can work with other individuals to sell your property. For example, you could use a consignment agreement in which you sell some of your personal property and give a percentage of the sales to the consignment shop. You could also get help from an eBay consultant selling your goods online. Once you generate the money, you can use it to pay off your debt.
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