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What - Definition
Debt Solutions - Any course of action or service designed to mitigate or eradicate debt.

Consumer Debt Solutions
Options for handling a debt situation and solutions for debt are various. Consumer debt solutions may or may not require the involvement of a third party debt industry service provider, since it is possible to action or arrange clear debt solutions on your own. Throughout this site we present clear debt solutions and alternatives. In debt solutions include outside help and do it yourself.

consumer debt solutions

In Debt Solutions Summary:

1. Consolidation Debt Solutions
2. Bankruptcy Debt Solutions
3  Applied Learning Debt Solutions
4. Other Action Debt Solutions

1. Consolidation Debt Solutions

Consolidation of debt or of repayments towards. These consumer debt solutions often involve a debt service industry provider but not necessarily.

consumer debt solutions

  •  Loan
  •  Plan/Program
  •  Settlement

 

Loan: Consolidate two or more debts into a single new loan at a combined lower interest rate. Debt is said to be consolidated into one new creditor account. Previous accounts are paid off in full. The previous accounts may or not be closed. There is consolidation in the number of creditors.

A loan may be obtained from a specific "debt solutions industry company" or from another source. The provider may often act to pay off the previous creditors on your behalf as part of the process. Other loans may be obtained to perform your own consolidation exercise (do it yourself consolidation loan debt solutions). Loan debt solutions also include refinancing one loan into another (although technically not consolidation).

Plan/Program: You enroll in a repayment program run by a service provider who steps in to negotiate with your creditors for lower interest rates. The provider continues to make repayments on your behalf. In return, you pay a monthly installment to the plan/program operator for the duration. Program debt solutions are long-term commitments. Do it yourself plan/program debt solutions involve negotiating with creditors directly yourself - and establishing your own strict repayment regime which such debt solutions require.

Settlement: Settlement consumer debt solutions involve a service provider negotiating with your creditors to reduce both the amount owed (principal) and the rate of interest payable on it. Consumer debt solutions of this type continue to receive bad press for various reasons including numerous bad operators. There are however reputable and worthy operators offering legal debt solutions in this sector.

Both Plan/Program and Settlement industry legal debt solutions work to consolidate repayments, but not the debt or the number of separate creditors that you are liable to, until such time as plan or settlement is complete.

2. Bankruptcy Debt Solutions

Court awarded in debt solutions arranged by a legal service provider or do it yourself bankruptcy. Chapter 7. & 13. These are clear debt solutions of last resort.

  • Chapter 7.
  • Chapter 13.

 

3. Applied Learning Debt Solutions

  • Budget creation and fiscal management
  • Personal Financial Planning

clear debt solutions Self-help, free debt solutions that involve learning and practicing good budgeting, money management and personal financial discipline. Also being guided by personal financial planning professionals to help clear debt. Solutions that you can manage yourself to clear consumer debt now.  

 

4. Other Action Debt Solutions

There are other clear debt solutions available:

  • Borrow Against 401K
  • Liquidate IRA
  • Collateral & Margin Loan
  • Life Insurance Loan
  • Liquidate Assets (Sell items)
  • Terminate Savings Or Investments
  • Borrow from Friends/Family In Order To Clear Debt Solutions
  • Increase Income and Cut Back Spending

 

Borrow Against 401K
Many employers allow a loan from a 401K, other retirement or profit sharing or thrift plans to help clear debt. Solutions that do not involve a credit check/report inquiry. Lending limits, absolute amount and percentage of your account's value. If fired or quit with an outstanding balance there are tax and penalty implications; or if you do not pay back within 5 years. Interest is not generally tax deductible using these debt solutions. One of the last resort loan debt solutions.

Liquidate IRA
Use this money to pay off debt. Again, considered one of the last resort loan debt solutions. There are situations when this could make sense, however you should understand the implications. Consider seeking professional advice if considering 401K and IRA consumer debt solutions.

Collateral & Margin Loan
Use any financial instrument/s that you have (stocks, bonds and mutual funds) as collateral for a margin loan. Use other assets (collateral loan debt solutions).

Life Insurance Loan
Policy debt solutions. Borrow against your life insurance. 

Liquidate Assets (Sell items) 
Sell anything of value that you do not need, from garage sale items through jewelry, a superfluous vehicle or timeshare etc. Generally things which are depreciating in value. Simply selling stuff might be one of the best debt solutions if your debt is not that great.

Terminate Savings Or Investments

Borrow From Friends/Family In Order To Clear Debt Solutions

Appears on a list of debt solutions because in certain cases and under certain circumstances, this may be a course of action to clear debt which is easy to arrange and helps pay off an interest bearing debt completely. It may be an option when other clear debt solutions and alternatives are not available. According to the agreement to repay this "loan", it should be cheaper than continuing to service the original debt. Be clear on what the "'loan" is for and only borrow for the reason to clear your debt completely. The downside: friends and family are not here to clear your debt and are not debt solutions to a problem of your own making. Moreover, money being "the root of all evil" there is frequently relationship consequences in addition to self esteem. If you value these, find other consumer debt solutions.

Increase Income and Cut Back Spending 
Often overlooked consumer debt solutions. Increase income and use all of this for paying down debt - in addition to your existing repayments. Also cut back spending to enable more money to go towards routine debt repayments.











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