Unfortunately, a growing number of Americans find themselves struggling to cover their financial obligations. Whether you are trying to pay off unexpected medical bills, ballooning student loans, or credit card balances that for out of hand, the sheer insurmountability of it can become overwhelming. If that sounds familiar, there is hope. Here are three ways to start getting out from under that mountain of debt.
1. Consolidate Balances
Debt consolidation can be a viable solution to your growing bills. It offers a way to lower interest rates and streamline payments if you are able to afford it. This process usually requires you to put all of your current balances into a single, larger loan with a lower interest rate.
If taking out a new loan isn’t a possibility, you can also try calling individual creditors and negotiating a lower rate. Many companies are willing to do this because they know it increases their chances of getting paid.
2. Talk With an Attorney
Bankruptcy is never the first option, but it is a viable one for many people in financial trouble. Be careful about any services that seem too good to be true; they probably are. Instead, look for a reputable bankruptcy law firm Edmonds to help guide you through this process. Your attorney will gather all of the required information and file paperwork with the courts. Be aware that a bankruptcy will remain on your credit report for 10 years, so use that time to rebuild other aspects of your credit.
3. Learn How To Manage Your Finances
Once you get your balances under control, you want to learn new financial habits so you don’t end up in the same place again. If you want to try this on your own, there are tons of great online personal finance courses that are completely free.
Many people find themselves overwhelmed with mountains of debt. Debt consolidation loans and bankruptcy are two ways to eliminate existing debt. Once you do that, it is important to learn proper financial management skills so you don’t end up in debt again.