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Are you in need of debt relief? Ask yourself these three questions..
- Are you making only the minimum payment on your credit cards?
While this isn't as bad as not making any payments at all, this is still bad. Because of the interest,
your debt is actually increasing, not decreasing.
- Are you beginning to fall behind on your mortgage payments?
The last thing you want to do is lose your house. It's horrible for your credit
and all those monthly payments you've been making will be lost.
- Are you getting nagging phone calls from collection agencies?
You get letters, you get phone calls, you get threats, they will do anything to collect.
If you answered yes, you need debt relief. Here
are your options for getting out of debt.
- Debt consolidation
Debt consolidation is when you take out a new loan to pay for your debts. This
new loan has a lower interest rate than your other debts. It's good because
instead of owing 5 people you only owe one place now.
- Debt settlement
When you're late on payments and you simply can't pay a loan back. Contact your
lender and tell them you won't be able to pay them at all. They may be willing
to negotiate with you to pay off only part of the debt. They could report it to
the credit bureaus and negatively affect your credit score though.
- Bankruptcy
This is your last resort. If you file from bankruptcy, all your debt gets wiped out and you get to start over.
The bad part is that everything you own gets taken from you and your credit is ruined, making it highly unlikely you'll
get a car loan or a mortgage.
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