Debt Solution 101 - How To Fix Your Debt Problem

How Many Ways Can I Fix Your Debt Problem? Let Me Count The Ways!
If you are seeking to fix your debt problem, you have probably already been bombarded and confused by the numerous companies advertising an endless stream of debt solutions. A quick search on the Internet alone and you will find hundreds of methods companies claim you can use to solve your debt problem.

The Five Common Methods To Fix Your Debt Problem
Contrary to popular belief, there are only five methods to fix your debt problem. If you have started a journey to back in control of debt, then you want to know the difference between debt hyperbole and real debt solutions that work.

At last check, (which was in October 2008) I counted no less than three-dozen methods supposedly designed to get you out of debt. Each of them had one eerie common denominator that you should be aware of; they all wanted outrageous upfront fees! That should be a GLARING WARNING SIGN anytime you see it. Heed this warning, no matter what they promise, stay away from companies like that! Here are the five accepted methods for fixing your debt problems.

Fix Your Debt Problem, Method #1 - The DIY Repayment Plan
The Do It Yourself method to fix your debt problem is the idea method to use because it does not involve any third party. That means you don’t pay any fees to debt counseling companies or credit counselors. However, in order to succeed with this method of debt solution, a person would need to have great negotiating skills, be good at math and have a firm grasp on the rules of debt, credit and finances.

Fix Your Debt Problem, Method #2 - Debt Management
The debt management path is for those who have decided that they rather have qualified professionals fix their debt problem. By choosing this debt solution method, you are bringing in a debt management service to analyze your finances and set up a workable debt repayment plan. The key here is knowing what to look for in a reputable debt management company that has a history of delivering what they promise. Be advised, there is almost an endless line of debt charlatans waiting in the wings to defraud you out of your money.

Fix Your Debt Problem, Method #3 - Debt Settlement
I’ll start by making a very important statement: not everyone qualifies for this debt solution method. One cannot enter into a debt settlement agreement unless they have the cash available to settle. They need the cash for two purposes: (1) To pay their creditors. When creditors agree to accept less than the original amount of the debt, they generally want the new agreed upon amount right then and there. And then number (2) To pay the debt settlement company that successfully negotiated the debt settlement. On the down side, as you can see, unless the debtor has the cash available, this is not a feasible method of debt recovery. On the up side, this debt solution method not only reduces your debts by 40% - 60%, it also rescues you from paying the monthly installments to your creditors.

Fix Your Debt Problem, Method #4 - Debt Consolidation Loan
Essentially, this debt solution method involves combining all of one’s unpaid debts, (i.e., credit card debt, personal loans, car loans, mortgages, medical bills, etc.) into one single payment. Instead of making payments to multiple creditors, the debtor is now making one payment, to one creditor. If you qualify, debt consolidation is an excellent method to fix your debt problem.

Fix Your Debt Problem, Method #5 - Bankruptcy
There are numerous scenarios people find themselves trapped in and the only debt solution to fix their debt problem is bankruptcy. They could have gotten snared in the medical bill trap, been in an accident, experienced a layoff or they could have simply mismanaged their finances beyond repair. Whichever the case may be, oftentimes bankruptcy may be the only recourse. Having shared that, I advise everyone considering bankruptcy to seek professional counsel from a reputable debt counselor before taking any action.

William Phillips brings a degree in economics and an unwavering passion to help fellow Americans come from under the clutches of debt. He believes that with the right debt advice or debt counseling, anyone can recover from the stresses of being overwhelmed with credit card bills and other debts.