Connect with us

Business

3 Debt Relief Options To Deal With Creditors, Manage Your Debt And Save You Some Money

3 Debt Relief Options To Deal With Creditors, Manage Your Debt And Save You Some Money

If you manage to default on your loans, you will often get several letters demanding that you settle your debt or you will otherwise face legal action. This can often make a debtor feel that declaring bankruptcy is the only option.

However, under normal circumstances, creditors often want to avoid such drastic measures that would mean that their payments are further delayed and that they would have to incur further costs in order to have their debt settled. It would be preferable to all parties to settle the debt by negotiating terms that will be agreeable to all.

Before choosing bankruptcy, it may be best to seek different options. Visit nationaldebtreliefprograms.com to explore some of your options.

You could also seek to come to an understanding with your creditors by considering a loan workout and other less drastic measures as opposed to bankruptcy.

Find below some of the debt relief options that you have to informally and formally negotiate with your creditors to manage your debt and save some money.

3 Debt Relief Options To Deal With Creditors, Manage Your Debt And Save You Some Money

Restructured Payment Options

The best option is always to pay your bills before they are due in order to avoid getting into debt. If that is not possible, you could try a direct approach and get a repayment schedule.

If your inability to make a payment for a debt is a temporary matter, and If you have been prompt with payments so far, your creditors are likely to extend you some courtesy (probably at a small cost) of allowing you some time before you can resume payments.

If you are not sure when you will be able to resume normal payments, you can request to pay lower monthly amounts through being forgiven for part of the debt or by making payments over a longer period of time.

Loan Workouts

Loan workouts are mutually negotiated, formal debt modifications between a debtor and creditor, but less intimidating or stigmatizing as opposed to bankruptcy negotiations.

Loan workouts could come in 3 forms, namely:

  1. Extension: this is a contractual agreement where the debtor and two or more creditors agree to have the debt settled over a more extended period of time.
  2. Compositions: this is a contractual agreement where the debtor and two or more creditors agree to a part payment to fully settle the debts.
  3. You could also have a hybrid agreement that is a combination of both a composition and an extension.

There could be several advantages to choosing a loan workout as opposed to bankruptcy. These advantages include:

  1. The stigma of bankruptcy is avoided.
  2. You could still have the option to file for bankruptcy if need be.
  3. The arrangement is voluntary between the debtor and creditors, and if you manage to get several creditors to agree to terms, you could have a better grip of your overall debt.

If you are unable to come to some sort of understanding with your creditors, having explored the above options, it may be time to seek further help. You could visit a debt relief company to explore further options.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

Home Improvement7 hours ago

How to Combine Traditional and Modern Furniture with Style

Are you in love with both traditional and modern furniture styles? Do you feel like you can’t decide between those...

How to Organize Your Garage How to Organize Your Garage
Autos4 days ago

How to Organize Your Garage

Do you have so much stuff in your garage, your car is left out in the cold? Keep reading. Your...

Tips On Preventing Accidents In The Workplace and Keep Your Employees Safe Tips On Preventing Accidents In The Workplace and Keep Your Employees Safe
Business1 week ago

Tips On Preventing Accidents In The Workplace and Keep Your Employees Safe

Preventing accidents in the workplace is both the moral and ethical responsibility of every employer. Knowing that there’s a safety...

4 Surprising Ways SaaS Can Be A Game Changer For Small Business 4 Surprising Ways SaaS Can Be A Game Changer For Small Business
Business1 week ago

4 Surprising Ways SaaS Can Be A Game Changer For Small Business

The World Wide Web will never run out of tips and strategies on how to grow your business. These days,...

Understanding SaaS, PaaS, IaaS Prior to Selecting One For Your Business Understanding SaaS, PaaS, IaaS Prior to Selecting One For Your Business
Tech3 weeks ago

Understanding SaaS, PaaS, IaaS Prior to Selecting One For Your Business

Summary: Cloud Computing is rising at a faster pace, and it’s crucially important for organizations to move to the Cloud...

5 Tips to Avoid Federal Tax Penalty For Taxpayers 5 Tips to Avoid Federal Tax Penalty For Taxpayers
Finance3 weeks ago

5 Tips to Avoid Federal Tax Penalty For Taxpayers

When you are undergoing a tax issue, then it is vital to have knowledge of what are you up against...

Spy App For Android A Tool For Keeping Workplace Spy App For Android A Tool For Keeping Workplace
Tech1 month ago

Spy App For Android A Tool For Keeping Workplace

Dealing with routine matters has been a lot easier and stress-free thanks to modern technology. Want to order food, use...

How to Create A Backyard Zen Oasis How to Create A Backyard Zen Oasis
Home Improvement1 month ago

How to Create A Backyard Zen Oasis

The lifestyle of the modern era usually depletes one’s energy by the time they get home from work. Whether or...

Mistakes You Need to Avoid When Preparing Your CV Mistakes You Need to Avoid When Preparing Your CV
Education1 month ago

Mistakes You Need to Avoid When Preparing Your CV

Writing a CV can be hard. You have to somehow condense all your experience into 1 or 2 A4 pages....

Home Decor Trends For 2021: What You Can Expect Home Decor Trends For 2021: What You Can Expect
Home Improvement1 month ago

Home Decor Trends For 2021: What You Can Expect

This year, the Covid pandemic has had a huge impact on many different industries and sectors and one which has...

5 Ways to Protect Your Teeth This Christmas 5 Ways to Protect Your Teeth This Christmas
Health1 month ago

5 Ways to Protect Your Teeth This Christmas

Christmas is just around the corner and the preparations are well underway for the festive day, even if it is...

How to Create A Referral Marketing Program In 6 Easy Steps How to Create A Referral Marketing Program In 6 Easy Steps
Marketing2 months ago

How to Create A Referral Marketing Program In 6 Easy Steps

You may have heard of the benefits of a referral program. Besides helping you attract more traffic to your website,...

5 Important Web Design Considerations to Make For Better SEO 5 Important Web Design Considerations to Make For Better SEO
Tech2 months ago

5 Important Web Design Considerations to Make For Better SEO

Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...

4 Reasons For Your Teeth Becoming Sensitive 4 Reasons For Your Teeth Becoming Sensitive
Health2 months ago

4 Reasons For Your Teeth Becoming Sensitive

Having sensitive teeth can be a common issue for many, but it can also be a sign that you have...

How To Keep Your Business Clean & Sanitised How To Keep Your Business Clean & Sanitised
Business2 months ago

How To Keep Your Business Clean & Sanitised

If your business offers any kind of public-facing services, then you will likely be thinking a lot more about the...

Categories

Archives

Trending