What Are My Debt Relief Options?
Are you struggling with overwhelming debt? Do you feel like you have no options left? Are you stuck and don’t know which way to turn? With Australia’s household debt to income ratio at almost 200 percent, according to the Australian Bureau of Statistics, you’re certainly not alone.
While having debt can be a stressful and confusing time, there are lots of debt relief options available if you know where to look. From personal budgeting and management plans, to debt consolidation loans and personal agreements, there are many effective ways to manage your debt and gain back control of your life.
What Is Debt Relief?
Debt relief programs help people to get back on their feet as quickly as possible. Depending on the size and type of debt, there are a number of options available to you, with some programs capable of wiping out debt entirely and others helping you to manage it more effectively. While you can do a lot of debt relief work yourself, it’s normally a good idea to enlist the help of the experts. Here at Debt Negotiators, we analyse each case on its own merits and come up with a tailored solution that helps you gain financial control.
Budgeting And Management Plans
Personal budgeting and management is the first line of defence in debt relief. By setting a budget and increasing your ability to make payments, you can gain control over your debt in a sustainable and easy to manage way. While paying the monthly balance on your debts might sound easy, effective budgeting requires discipline and often, external help is needed. Sometimes you need to enlist the help of financial counsellors to help you create realistic monthly budgets and repayment schedules.
Debt Consolidation Loan
A debt consolidation loan involves putting all of your debts in a single basket. This has a number of benefits, including easier management and the possibility of exchanging multiple high interest debts for a single low-interest debt. People often use a home equity loan as a form of debt consolidation, which can save you lots of money on interest payments. If you’re thinking about one easy to manage loan, make sure you look at all the fees involved and the terms of the loan so you know what you have to pay to consolidate your debt.
A Debt Agreement is a legally binding agreement between financial providers and debtors. While this method of debt relief is similar to a debt management plan, it involves a formal agreement that allows experts to negotiate on your behalf. This process starts with a detailed analysis of your income and financial capabilities, with negotiators able to help you create repayment plans and possibly even lower the outstanding amount of debt you have to pay. A Debt Agreement is legally binding and can be tailored to meet the needs of your budget. While a Debt Agreement can assist you with having manageable payments there are also negative aspects that need to be considered.
Bankruptcy is the last resort when it comes to debt relief, it can be useful in certain situations. If you become bankrupt, you are declared legally unable to pay your debts. While Bankruptcy may be appealing, depending on your situation, there are also negative aspects that need to be considered.