Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Debt Consolidation » Article
 

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 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.


 
 
About the Author
Cornie Herring is the Author from http://www.StudyKiosk.com. StudyKiosk-Credit Basics is an informational website on credit basics, debt consolidation and bankruptcy.

Article Source: http://www.simplysearch4it.com/article/46393.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/46393.html" as shown above and make it hyperlinked.



  Some other articles by Cornie Herring
When Your Credit Score Become Important?
Have you ever wonder why your online application for credit can be approved in 60 seconds? Or get pre-qualified auto loan ...

Get To Know The Bankruptcy Filling Process If This Is Your Option
Filing for bankruptcy is a very personal decision. Heavy debtors may choose to file a bankruptcy if they see no other way out from their heavy ...

Payday Loan Is High Cost Cash, Avoid It!
Payday loan is a small, short-term, high interest rate loan. It also known as cash advance loan, check advance loan, post-dated check loan, or deferred deposit check loan. It often repaid after you ...

What Is Accelerated Debt Consolidation?
Are you burdened with debts? Are you finding it harder each month to meet the minimum payments for your debts? Your debts are piling up every month, creditors' calls make your feel very stressing; and you are ...

What Is A Lien On A Property?
When you use your home as the collateral to get a loan, your lender will have a lien on your property. What does this mean and what are the risks involve when someone has a lien on ...

Consolidate Debt With Home Equity as Security
In these days, hard to find a person with zero debt and most people have more than one debt. You may have high interest credit card debts, loans ...

  
  Recent Articles
Alleviates debt burden - Debt consolidation loans
by Alan Jordan

Low Rate Debt Consolidation Loan - Ease Debt Burden At Low Cost
by Bonnie Castle

Two Steps To Credit Card Debt Elimination
by Tony Pescatore

Freedom from Debts: Debt consolidation loans
by Tim Kelly

No More Debts to Follow You: Personal Debt Consolidation Loan
by James Taylor

Debt consolidation: life-breath of a debt free life
by Alex Jonnes

Unsecured Debt Consolidation Loan: Easy Way To Deal With Debts
by Maria Smith

Secured Debt Consolidation Loan-at Lower Interest Rate
by Maria Smith

Solve Your Debt Worries with Unsecured Debt Consolidation Loans
by Ann Gibson

Ease Off Debt Burden Through Unsecured Debt Consolidation Loans
by Andrew Baker

Easy Solution To All Your Debts: Online Debt Consolidation
by Ann Gibson

Credit Card Debt Consolidation Shows Way To Reduce Debts
by Ann Gibson

Can't connect to database