Other Debt Relief Options

Setting goals and creating budgets can help just about any financial picture, but unfortunately sometimes more drastic measures need to be taken. If you are so deep in debt that you have pending lawsuits or legal action, it might be necessary to take a different path to financial stability. Here are a few other debt relief options that can help.

Refinancing Large Purchases

Sometimes when people make large purchases, they make poor decisions regarding interest rates and finance options. The world of finance can be difficult to comprehend, and the fact of the matter is that sometimes people just don’t realize what terms they are signing.

For example, your local furniture store might offer six months free financing, but then jack up the interest rate to 40% when the money comes due. Deals like these cost people a lot of money, and so sometimes it is necessary to refinance larger purchases.

If you choose to refinance, you can change the terms of some types of loans. For example, if you have a truck with a super high interest rate, you might be able to refinance when rates are lower in order to make your monthly payment more manageable.

Working With Creditors

Sometimes, you can change the terms of your payments to creditors just by talking with them. When you explain to creditors that you intend to pay them back, many finance departments are willing to set up payment plans, or even reduce the amount that you owe. Sometimes, you might even be eligible for financial aid, in order to help you with your bill. Your credit counselor can help you to know what to do and say in order to achieve success with creditors.

Dealing With Debt Collectors

There are rules that debt collectors are required to abide by. Unfortunately, many people are unfamiliar with these guidelines, which can make dealing with debt collectors extraordinarily difficult. For example, debt collectors are not allowed to contact you before 8 in the morning, or after 9 in the evening.

They are also not allowed to call you at work, if they have knowledge of your work being upset about it. A credit counselor will help you to understand your rights, so that you know how to handle those troublesome phone calls.