Today’s consumer is overwhelmed with both secured and unsecured debt. This debt burden is causing not only a financial crisis but an emotional crisis within the consumer’s family.  When a family is overloaded with debt and trying to keep their head above water several things need to occur to assist with this situation.

The consumer needs to step off the financial and emotional treadmill they have built for themselves. There are several ways to approach the problem.  The consumer need to investigate the solutions that are currently available for them and their particular financial situation. 

The most common methods are:

·         Bankruptcy – This is the most serious of solutions to your problems.  Please consult an attorney.

·         Debt management/debt counseling – Basically, this program works to get the interest rate lower but the balance is not reduced.  These type of programs are reflected on your credit report.

·         Debt settlement – A third party works on your behalf to negotiate with your lenders to cut your balance from 40 to 50%.

·         Home  equity loan – This is 2nd mortgage against your home if you have any equity in the property.  This is normally an interest only loan with the rate floating at prime rate plus some percentage above prime.

·         Do nothing – This is not a good way to fix the problem.

This is not an overnight solution for the consumer.  If you select debt settlement, you will need to understand all the steps involved in the process. However, it is a method  to reclaim your finances and relieve yourselves from the pressure of the mounting debt burden.  

According to debt expert Gerri Detweiler, author of “The Ultimate Credit Handbook”, “It’s a little-know fact that when you fall further and further behind on your payments, creditors would much rather agree to settle your debts than have you file bankruptcy and not get paid at all.”

So call an expert today to find a solid solution for your problem.