Are you in debt? 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,
especially if there is no way that you possibly could pay back
what you owe. The American constitution gives citizens the right
to be emancipated from debt and it is a choice that some must
select in order to be set free. However, recent changes in U.S.
bankruptcy laws have made filing for bankruptcy much more
difficult to do; search online for the latest information about
the new bankruptcy laws.
2. Consolidate Debt. Before seeking relief through
bankruptcy, consider combining all of your debt in order to make
one monthly payment. Loan consolidators can help you come up
with a plan to pay off all of your debt while helping you to
maintain your credit standing. Bankruptcy, unfortunately, ruins
your credit while a consolidation loan may help you reclaim it.
Consider finding a credit card that allows you to consolidate
your debt through balance transfers - some have low introductory
rates too.
3. Redeem Your Life Insurance Policy. Your life insurance
policy may have some cash value to it. Think about taking cash
from the policy and using it to pay off or reduce your
obligation.
4. Government Borrowing. Help may be available to you
through a government entity [i.e., city, county, state, or
federal] and at a rate lower than what conventional creditors
might assess. Examine loan programs, grants, family gifts, etc.
to uncover what may be available to you.
5. Borrow From Your 401(k). If you have a 401(k) or
403(b) plan, you might be able to create a low interest rate
loan and use the monies to pay off or reduce your debt. You are
borrowing from your retirement account so you will need to pay
everything back [with interest] or face tax penalties.
While these solutions are 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.
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Copyright 2006 - For additional information regarding
Matt Keegan,
The Article
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