5 Debt Solutions If You Cannot Pay Your Debts

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5 Debt Solutions If You Cannot Pay Your Debts
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1 Debt Consolidation

• Are you in debt and need help getting out of it?
  If youre unable to pay your debts and do not see
  yourself being able to do so in the next few
  years, five debt solutions may help you. These
  solutions include debt consolidation, personal
  loans, bankruptcy, debt management plans, and
  debt settlement. Each option has its own set of
  pros and cons, so you should carefully evaluate
  them before deciding on one or several that could
  work best for your situation. Lets take a closer
  look at each solution and how it can help you get
  rid of your debts once and for all!

Are you in debt and need help getting out of it?
If youre unable to pay your debts and do not see
yourself being able to do so in the next few
years, five debt solutions may help you. These
solutions include debt consolidation, personal
loans, bankruptcy, debt management plans, and
debt settlement. EacDebt consolidation is a debt
solution that has risen in popularity, but its
not without risks. It involves combining all of
your unsecured debts into one new loan and making
single monthly payments to your creditor. Though
consolidating does lower interest rates, you will
still be responsible for repaying your debts,
which can take up to 25 years on average. If you
plan on paying off your debt quickly, consider
other debt solutions instead of consolidating to
save money on interest.
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2 Debt Settlement

• Consolidation may also increase your credit score
  by reducing your overall debt-to-credit ratio. Be
  sure to check with potential creditors before
  committing so that you understand what rate they
  offer and how long they expect repayment to take.
  Keep in mind that while credit card companies are
  typically more flexible than banks when
  considering consolidation, they often charge
  higher interest rates as well because they know
  consumers are desperate for relief from their
  high balances. In fact, according to Federal
  Reserve statistics released in June 2016, 44 of
  consumers who use credit cards consolidate their
  balances. And if you have multiple loans or lines
  of credit with different creditors that carry
  high-interest ratesincluding personal
  loansconsolidation may save you even more money
  than lowering just one or two existing balances.V

When it comes to debt solutions, bankruptcy is
probably one of your last resort options. This
solution allows you to pay off your debts over
some time and maybe beneficial for anyone who
owes more than 10,000 in unsecured debt (such as
credit cards) or more than 11,000 in secured
debt (such as a mortgage). When filing for
bankruptcy it can be helpful to hire an attorney.
Although bankruptcy will not result in debts
being forgiven immediately, it is a smart choice
if you cannot get on top of your obligations
within several years.
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3 Bankruptcy

• Bankruptcy results in all creditors being cut off
  so that they can no longer seek repayment.

Filing for bankruptcy can be stressful, but many
find it to be a great debt solution. When you
file for bankruptcy, all or part of your debts
may be forgiven. While youll need to adhere to
certain legal requirements once your case is
filed, there are several options available and
your specific situation will dictate which avenue
is best for you. Keep in mind that a bankruptcy
wont affect all of your debts typically, only
credit card bills and personal loans will fall
under that category. As long as your other debts
dont total more than 250,000 (excluding student
loans), and they were not incurred within 60 days
of filing, they should be shielded from any
proceedings.
4 Refinancing
This solution will only be suitable for people
who are seeking debt advice. If you are finding
it difficult to pay your debts, there is a way
out of your financial problems. You may want to
consider going bankrupt and entering into a
Personal Insolvency Arrangement (PIA). This may
help you manage your debts, protect some of your
assets and get back on track financially. A PIA
can vary depending on what stage you are at with
your debt repayments.
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5 Personal Insolvency

• The first type of PIA is a Disclosure Order,
  which allows you to maintain control over most of
  your assets but for them to be protected from any
  further claims from creditors, you must agree not
  to incur any new debt without consulting an
  Official Receiver.

If you cannot pay your debts, but you want to
remain in control of your assets, being declared
bankrupt may not be an option. To be declared
bankrupt, a court has to decide that you are not
able to pay off all or part of your debts because
there is no prospect of doing so within a
reasonable time and it would be unfair for
creditors to have their debts paid at less than
full value. Two other forms of insolvency do not
require a bankruptcy petition Individual
Voluntary Arrangements (IVAs) and Debt Relief
Orders (DROs). An IVA means working out a
repayment plan with creditors in return for
having some or all of your debt cancelled as
long as certain conditions are met.
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  tions-if-you-cannot-pay-your-debts/