Fix Your Debt Problems Forever
Many people find they need help to clear credit cards. They spent money thinking they would be able to repay it only to find their financial circumstances changed. This can happen to anyone at any time, due to a car accident, medical problems or other unforeseen calamity. This does not mean all is lost, however. Thanks to the numerous debt solutions currently offered, any individual will find they can clear this debt and move forward financially. Often this can be done in less time than they imagined. Following are some options every debtor should consider.
Some individuals find they cannot pay their debts regardless of what steps are taken. In this situation, the person has the option of filing for bankruptcy, a process in which debts are written off and creditors will no longer be allowed to take legal action against the debtor. Before taking this step, however, individuals need to realize filing for bankruptcy could affect their ability to get credit in the future, their assets may be sold to satisfy the debt and they may be required to make payments on the debt for a period of three years before the debt will be written off. This depends on many factors and the court has the final say.
Debt Management Plans
A debt management plan is made between a debtor and his or creditors. With this type of plan, the debtor agrees to make monthly payments to settle the debt, yet these payments are less than what he or she currently pays. Interest fees may be reduced or dropped completely when the plan is in effect, and communications between the debtor and creditors tend to lessen. This helps to reduce the stress on the debtor while allowing him or her the time needed to pay the obligations.
Individual Voluntary Arrangements
With this type of arrangement, a debtor agrees to repay the funds owed over a predetermined time period. For most individuals, this arrangement lasts for a period of five years, and any debts that remain when this time period passes will be erased in most cases. Individuals need to be aware that their property and assets may be at risk if this option is selected, however, many individuals find this is all they need to get their finances back on track for good.
Scottish Trust Deeds
Only individuals living in Scotland may take advantage of this option, one that is similar in many ways to an individual voluntary agreement. Here, the debtor makes payments on their debt for a period of up to four years. Any debt that remains at the end of the four years will usually be written off. Payments may change during the agreement depending on certain factors also. Therefore, individuals considering this option need to consider all solutions.
Clear Debt with the help of one of these options and move forward with life. However, simply eliminating existing debt isn’t enough. Be sure to plan for the future and find ways to ensure the same problem doesn’t arise again. Although no person can predict what will happen, planning ahead can help to prevent financial difficulties. Make the time to do so and find life to be enjoyable once again without the threat of debt hanging over you. It is possible when a person knows where and when to seek debt advice.