Manage Your Debt: #4 Choose Your Path and Take Action

Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.

Manage Your Debt: #4 Choose Your Path and Take Action

When faced with unappealing choices, it’s natural to procrastinate. But after you’ve assessed your situation, gathered the relevant information, and sought expert help, the path you need to take should be pretty clear.

Option1: The Pay-Off Plan
If you can pay off your unsecured debts without help or with the help of home equity borrowing, you’re ready to take the first step: cutting up your credit cards. “What?” you might be saying. “Cut up my cards? How can I live without my cards? News flash: People do it all the time.

You can’t get out of debt if you keep digging. And if you have easy access to your cards, you’ll keep using them. Your credit cards need to be off limits until you’re debt free. Debit cards with Visa or Mastercard logos are accepted at most places that take credit cards. The difference is that the money comes directly out of your checking account, so it’s much tougher to overspend.

Option 2: Credit Counseling
If you decide you need a credit counselor’s aid, make the appointment to get started on a debt management plan. Everyday you delay is costing you more in interest and putting off the moment when you’ll be debt free.

Understand that paying off your debts will be a longer term commitment, and that living on the tight budget necessary may be frustrating. If you need motivation to keep going, consider joining the message boards of one of the frugality-oriented web sites to get support and keep your spirits up.

Option 3: Bankruptcy
If bankruptcy is the nest of bad options, then file. The bankruptcy laws were designed to give people a fresh start, and if you’ve done your best to find money to pay your bills and failed, you shouldn’t shun this option.

Your Credit Score Liz Pulliam Weston

Manage Your Debt: #4 Choose Your Path and Take Action

Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.