It is important to know that there are ways in which you can remove your family from this crushing debt, and regain a sense of normality in due time. Some of the reasons you might find yourself in this situation include credit card debt, student loans, or even medical expenses in collections.
To remove yourself from this cycle, it might be time that you consider a few debt relief options which can change the terms of your debt and assist in getting your life back in order.
Here are a few ways you can get debt relief for your family.
Look into debt management plans.
With debt management plans, you can pay your unsecured loans, most cases credit cards, in full normally at a reduced interest fee or with the fees completely waived off. You are required to make a monthly payment to a credit counseling agency which will then distribute the money received among your creditors.
While this happens, all your credit card accounts will be closed and you will have to live without any credit cards until you have completed the plan. Once this is done, you are then able to apply for credit.
The great thing about debt management plans is that they do not affect your credit scores given that you do not close your accounts.
Relief through debt settlement.
Debt settlement is an option that is not recommended by several people, as it works as a last resort for families who are unable to qualify for bankruptcy and have an overwhelming amount of debt.
Debt settlement companies work by asking you to stop paying your creditors, but instead put the money into an account which they would control. The creditors are then approached with an accumulated sum making you fall further behind on your payments.
The reason for this is the hope that your creditors accept a smaller lump sum of what you owe them in the fear that they might not get anything at all.
This method of relief could however lead to penalty fees, collection fees, or even legal action being taken against you. Late repayments also damage your credit scores.
Declare bankruptcy.
If you are well aware that it is not possible to pay your debt before entering any debt settlement or debt management plan, then it is recommended that you get into contact with a bankruptcy attorney or financial professional as you pursue a Edmonton debt relief strategy.
Most of them offer free consultations initially, and they may be able to assist your family if you decide to declare bankruptcy. Declaring bankruptcy can erase unsecured personal loans, most credit card debt, and medical debt.
If you qualify, it can be done in a period of around three or four months. However, with declaring bankruptcy, your credit scores will be affected for about 10 years, consequently affecting your chances of getting jobs, apartments, or car insurance in the future.
You will also not be able to file for bankruptcy again for another eight years on the chances that your debts continue to pile up.
Do-it-yourself relief.
You also have the option of borrowing money from the listed relief options above and taking control of your debt by creating an individual plan. This can be done by contacting your creditors and explaining your reasons for late payments.
other related articles of interest:
How Debt Consolidation Programs Can Help You Manage Your Debts
Most credit card companies have hardship programs that can assist your debt repayment by lowering interest rates or waiving off fees. It is also possible for you to educate yourself on debt settlement and negotiate an agreement with your creditors on how you plan on clearing your debt.
Conclusion
With these tips, it is clear that your family has a fighting chance of regaining a sense of normalcy when it comes to debt. Learning about the relief options available is the first step in determining the kind of future you envision for your family.
Conducting your research will be able to help you make a well-thought-out decision on which relief option will be the most ideal for your situation.
Image Credit: getting debt relief for your family by envato.com
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