Radical Debt Reduction Solution
Do you owe? Have you run out of options? There are solutions out there, some radical, but one or more may be what you need to help you get out of debt.
1. Bankruptcy. Yes, bankruptcy is an option for some people, especially if it is not possible you can pay back your debt. The American Constitution gives citizens the right to be free from debt and that is a choice some people must choose to release. However, recent changes in the U.S. bankruptcy law filing for bankruptcy is far more difficult to do; search online for the latest information on new bankruptcy laws.
2. Debt Consolidation. Before seeking help through bankruptcy, consider combining all your debts to make one monthly payment. Loan consolidators can help you make plans to pay off all your debts while helping you maintain your credit position. Bankruptcy, unfortunately, damages your credit while a consolidated loan can help you get it back. Consider finding a credit card that allows you to consolidate your debt through balance transfers, some of which also have a low introductory rate.
3. Redeem Your Life Insurance Policy. Your life insurance policy may have a cash value for it. Think about taking cash from the policy and using it to pay off or reduce your obligations.
4. Government Loans. Assistance may be available to you through a government entity [that is, city, county, state, or federal] and at a lower rate than that assessed by conventional creditors. Check loan programs, grants, family gifts, etc. To reveal what is available to you.
5. Borrow from your 401 (k). If you have a 401 (k) or 403 (b) package, you might be able to make a low interest rate loan and use money to pay off or reduce your debt. You borrow from your retirement account so you have to pay it all back [with interest] or face a tax penalty.
While this solution is radical for some people, one or more may be what you need to get back on your financial footing. Compare options carefully and choose the solution that is right for you.