If too much debt is weighing you down and you are struggling to meet your monthly expenses, you may need urgent solutions to reimburse your debts successfully. Debts can be malicious, preventing you from making savings. If your debts are very high, do not panic – there are different strategies you could consider to get yourself out of debts. Before starting to devise plans for repaying your debts, you should evaluate all the options that are available to you. (Information credit: Debt Therapy)

• Ø A Budget Plan

One of the best solutions to tackle your loan is to carve out a debt payment plan and follow through. If your debts are small, you can get rid of them on your own. It can take a lot of time, but is good for your credit score. You can also check your expenses and spending habits that put you in distress in the first place. You need to create a list your debts in the sequence you want to pay them off and take relevant measures.  

• Ø Debt Counselling

Debt counselling, also known as credit counselling, is an effective option to help you get rid of debts. You need to approach your credit counsellors with the list, and monthly expenses. They will analyse your financial concerns, evaluate your credentials and documents to devise a budget plan that you can follow up. In some cases, they can negotiate with your creditors and help you tone down your interest rates for your repayments. But you need to settle for a certified company that is registered with the National Credit Regulator for effective solutions.

• Ø Debt Consolidation

Another efficient way to tackle debts is debt consolidation. Loans are paid as instalments whereby there is a standard time period allotted for paying off the debts. Debt consolidation allows refinancing of debts - this approach utilises one loan to liquidate the other loans. Your counsellors will advise you to figure out how to address your financial concerns with suitable debt consolidation strategies.  

• Ø Debt Settlement

Debt settlement is a good option if you are unable to follow your budget plan. In debt settlement, you negotiate with your creditors to make a small payment amount for the whole debt. Going forward, you can lower down your payment about 25% of the original amount.

You will be required to pay monthly instalments to your debt settling agency while they set aside some money to manage your debts.

• Ø Bankruptcy

If everything else fails, you can consider declaring bankruptcy. You need to find an accredited bankruptcy attorney who will help you file bankruptcy. Remember, it is a dangerous option; it can badly affect your credit score. Once you lose your home for filing bankruptcy, you might not afford a second one. In addition, you might not be able to get a loan in the future if you choose this option.

Remember, that your debts were not created in a single day – consequently, it will take some time to liquidate. Do not panic. There are a lot of solutions available that can shield you from your credit providers, and help you get out of your financial predicament; all you need to do is research about your options and take the right decision.