If you feel your consumer debt is getting out of hand, it may be helpful to realize you have options for assistance. When you feel overwhelmed with your debt and are unsure of what steps to take to get your debt under control, consider talking to a financial expert about your situation and getting advice or help. Just be sure you talk to the right expert for your consumer debt situation.
Debt or Credit Counseling
According to the Federal Trade Commission, a debt or credit counselor may be the right choice if you feel that you need to add some organization to your finances but are not sure how. Many people have the resources to take care of their consumer debt within their monthly income, but aren't organized enough to handle the problem on their own. A debt counselor will help you put together a monthly budget that will pay your bills on time, and he can also put you on a program that can help you pay down some of your debt and reduce your monthly obligation.
Debt Consolidation
If your monthly minimum payments are just out of the reach of your monthly income, you may benefit from consolidating your debt. Debt consolidation is taking all of your high-interest rate credit card debt and getting it under one low monthly payment with an alternate form of financing. According to LowerMyBills.com, you can secure your own debt consolidation financing through a personal loan, a home equity loan or by using a zero-interest-rate credit card. Be certain you read all of the terms of any consolidation offer, and make sure your interest rate will not jump up over time. If you would prefer to have someone help you with your consolidation, many banks and financial institutions offer debt consolidation services. You can also visit a debt consolidation professional, but always check with the local Better Business Bureau office to make sure a debt consolidation organization is reputable.
Debt Settlement
The New York Times suggests that debt settlement should be the last choice you make before considering bankruptcy. Debt settlement is when you approach all of your creditors to find out what they will accept as a final payoff amount on your account. You can normally do these negotiations yourself, and then work out a monthly installment plan with your creditors to pay off your balance in a way you can afford. If you would rather hire a debt settlement firm to do your negotiating for you, do a similar check on them with the Better Business Bureau to make sure they're reputable.
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