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Debt Solutions - Your 12 Ways Out From Debts (part 5)
By Cornie Herring
Being in debt is no fun, especially if you are struggling to make ends meet. Because debt is a complex issue but there may be more than one solution. This article will outlines 12 common methods use by most of debtors to get rid of their debts. Among these 12 debt solutions, there may be one or more options which you can use to solve your financial problem.
In the last 4 parts, we have touched on the 9 debt solutions as below:
- Self Repayment Plan
- Debt Settlement
- Debt Consolidation
- Debt Consolidation Loan
- Credit Counseling
- Cash out Refinance
- Retirement Benefits
- Credit Union
- Insurance
If have miss it, please refer back to the same title with part 1,2,3,4. This is the last part where we will touch on the rest of 3 debt solutions which are:
- Home Equity loan
- Credit Card Balance Transfer
- Bankruptcy
Home Equity Loan
Home equity loan is a type of loan where you can borrow money against the value of your equity. The equity in your property can be calculated by deducting the outstanding mortgage on your home from the market value of your home, the remaining balance is the equity, which is what you would have left over in the event that you sold your property at market value and repaid your outstanding mortgage. A home equity loan enables you to unlock that equity and get the money you need without having to actually sell your home.
In most cases these loans offer attractive rates and low payment schemes. Hence, if you have equity and because of the low interest rate, you actually can pledge your equity to get a home equity loan to payoff your debt. Some lenders will let you borrow up to certain percentage of your equity, such as 80%, but there are lenders who will allow you to borrow up to 100% of your equity value.
Credit Card Balance Transfer
If you have a good credit rating, you actually can ask for a lower interest rate from your current credit card issuers. Contact your current credit card issuers and ask for their interest rate if you transfer your other credit card balances over to theirs. You may request for a fixed rate and request them to waive any processing or transfer fees. If you can't negotiate low interest rate with your current credit card issuers, try to get a new card which could offer what you want. Then, transfer all you credit card balances to this new card. You do consolidate this way, be sure to set up an optimal payment plan so that you can be free of debts by paying off all your debt.
Bankruptcy
Bankruptcy should only be you very last resort solution when you really can't find other solutions. Although declaring bankruptcy is the faster debt relief to wipe off all your debts from your bill statement, bankruptcy has many undesirable consequences that will follow you for many years; it will remain on your credit report for 7-10 years.
There are two common types of bankruptcy filling: Chapter 7 and Chapter 13. Most people who file for bankruptcy choose Chapter 7 instead
Better to short sell house or forclose before filing ch. 7?
I plan on filing ch. 7 in three months. I'm trying to sell my primary residence. The lender has agreed to a short sale, provided they reserve the right to collect on the unpaid HELOC balance.
Will this get wiped out when I file ch.7?
My attorney said I could just let it foreclose. That sounds worse. Is it?
Help Needed in Texas
This is my first post. All you folks are very helpful and hopefully you guys can point me in the right direction. I went to a realtor to kind of get an idea as to where my credit standing was and to enquire about purchasing a home with my fiance. He printed out a report and although its not great its not as bad as I anticipated. I have a few questions.
1) I have seen on various posts and sites about clearing up any old info such as addresses, inquiries, etc... Why is this a good option and ...
Removing Debt from Credit Report
I live in PA and i heard the statute of limitations on credit reports is 4 years. Is this 4 years from the date is it was opened or 4 years from the date it was closed? An example is:
Verizon PEN
500 Technology Dr. Weldon Spring, MO 63304
Balance: $139
Date Updated: 10/08
High Balance $0
Past Due: $139
Pay Status: Charged off as bad debt
Account Type: Open Account
Responsibility: Individual Account
Date Opene...
Statute of Limitation
On which Statute of Limitation would an eviction or broken lease contract fall in?
Clearing up credit
I realize now that I should have avoided this company. In 2004 I opened an account with gemb care credit. I paid off my account with in one year and took advantage of the free intrest. I requested the account to be closed at that time. However my husband just pulled our report. It shows that the account that I had long forgotten about was closed last month and had a 30 day late payment. I now have a ding on my credit report. My score is in the 700s and my husbands is in the 800s. Is it worth my ...
Too Good to Be True?
Im thinking about joining Resqdebt to help me get out of debt with credit cards and talked to a nice guy named Cory.He said they will pay half my balances and the other half I pay a monthly fee into my checking account until I have the rest to pay off the cc.They take one cc at a time and pay it off.It doesnt go against my credit rating and will show a 0 balance once its paid off.I have 3.5 years to pay all my cards off saving half off my total debt.He said if creditors call me ignore them.I ask...
debt relieve
will debt considation lower my credit score and if so then how much will it effect it and for how long?
Debt consolidation
I am considering debt consolidation. It would lower my monthly bills by a little and would help me out now. Problem is, the interest rate is higher than all of my current debts/loan rates, so in the long run I would be paying more, but soon I will be making significantly more and would probably be able to pay the loan off quicker. It would be about 20k over 4-5 years at 12%, where as I would probably be able to pay it off over 3-4 years. Plus, paying one bill a month is easier to budget and pay,...
HELP PDL on Credit Report
Midland Financial reported to Experian that I owed them $420 (which I don't) I disputed it with Experian about a month ago and haven't heard anything yet. I just went to check it again and it is now saying This account is scheduled to continue on record until Apr 2015.This item was verified and updated on Dec 2008.andquot; Does this mean that Experian verified the debt? I have requested debt verification 5 times in writing from Midland and once about 3 weeks ago over the phone because they cont...
dept
What does this do to my credit.
of Chapter 13 because it's fast, effective, easy to file, and doesn't require payments over time.
Seeing the consequences of bankruptcy, a debtor should always try to avoid filling bankruptcy and source for other debt relief alternatives. But if this is your last ultimate option for debt relief, with a little work, you can improve your credit and recover yourself after bankruptcy.
In Summary
Let recap, there are 12 common ways of debt solutions to get out from debts, these debt solutions include:
- Self Repayment Plan
- Debt Settlement
- Debt Consolidation
- Debt Consolidation Loan
- Credit Counseling
- Cash out Refinance
- Retirement Benefits
- Credit Union
- Insurance
- Home Equity loan
- Credit Card Balance Transfer
- Bankruptcy
Each debt solution has the pros and cons, choose the solution that best meet your financial condition. The bottom line is if you are in debt issues, you should always find a way to get out of it. The worst debt solution like bankruptcy may hurt your credit rating but keep in mind that the credit consequences of not seeking help are far worse.Free Article brought to YOU by ArticlesOn.com, where you'll find Articles On Everything! Visit http://articleson.com to get more free content. Cornie Herring is the Author from www.StudyKiosk.com. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy.
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