Connect with us


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 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

You must be logged in to post a comment Login

Leave a Reply

Recent Posts

Business4 days ago

How Can Product Owner Develop Stakeholder Management Strategy?

All the organizations require a proper stakeholder management-based strategy so that the goals of the organization can be achieved most...

Tech5 days ago

How To Display A Live Facebook Feed To Your WordPress Website

Around 22% of the global population uses Facebook. Such a large number of user-base suggests that Facebook truly has the...

wordpress-hosting wordpress-hosting
Tech1 week ago

5 Criteria of the Best WordPress Hosting to Know Before Buying

The best WordPress hosting, how to choose it? For many bloggers and website owners, there must be a question that...

Tech1 week ago

Agile BI – All You Would Like To Know

The name says it all. As we talk about one of the most revolutionary approaches in the world of business...

Sports2 weeks ago

Feeling Run Down?

We’re currently living through a difficult time for the world. Many of us are forced to remain indoors, working from...

Lifestyle3 weeks ago

8 Best Ways to Save Money When Shopping

If you want to save money when grocery shopping or each time you make a purchase, then you have to...

Travel Mistakes Travel Mistakes
Travel3 weeks ago

7 Travel Mistakes to Avoid

Traveling abroad requires a lot of planning and research to prepare for a trip abroad. Of course, it’s a wonderful...

Business4 weeks ago

5 Factors to Consider When Choosing Quality Magento Extensions for Your Online Store

It might seem that picking among three thousand available Magneto extensions is a simple and great way to extend your...

Business4 weeks ago


Internet shopping can be very common and easily turn out to be a favorite choice for buying, since the items...

Home Improvement1 month ago

6 Simple Ways to Prepare Your Home for House Guests

Whether a family is coming in for the holidays or it is your turn to host this month’s book club...

Marketing1 month ago

How to Properly and Efficiently Optimize Your Website for SEO

In today’s crowded online world, a website that’s not optimized for SEO may as well not exist. Unless a customer...

Home Improvement1 month ago

8 Terrible Home Cleaning Mistakes You Might be Making

Knowing how to clean your home correctly is something that nobody teaches you in the formal education system. If you’re...

Life Hacks1 month ago

7 Things You Can Do To Kill Boredom During A Long Flight

Going on a vacation is one refreshing activity and a fun thing to do. Things get a little difficult when...

Home Improvement1 month ago

5 Bathroom Remodeling Tips You Must Know In 2020

The bathroom is one of the most frequently used places in the house. So, it should be most comfortable as...

Health1 month ago

Data Breaches Can Cost Over $6 Million – Can Hospitals Protect Patient Data?

It’s safe to say at this point that data breaches in the US healthcare system are quite common and are...