Get Relief From Debt: 3 Extreme Options

The following is a guest post from Justine Anderson. Justine specializes in debt reduction strategies and how to stop collection calls. Although collection calls can be stressful and extreme debt overwhelming, Justine reminds us that there are options on the table for how to stop collection calls, even when things look darkest. Thanks for another great article, Justine!

Don’t think that you are doomed with debt forever, even if you are deep in debt.

There are various debt relief strategies that can help you out of the quagmire of debt and help you gain financial freedom again.

Most debt relief strategies aim at either reducing your interest rate on the outstanding debt making it easier for you to continue your monthly payments, or reducing the outstanding debt amount altogether. Both of these techniques can make it easier to put your debt away for good, regardless of how desperate your situation may be. If you are deep in debt, you may unsure of how to escape the cycle.

Whether your debt consists of payday loans, credit card debt, medicall bills or any other form of consumer debt, read on to learn three options which can offer temporary relief from extreme debt.  

1. Debt Management:  If you have a number of different debts that you are finding hard to pay back then you can opt for debt management. Debt management is professional help which is rendered by a debt management company. It involves a free credit counseling session which explains the different methods by which you can handle your personal finances and begin digging out of debt. Many debt management companies also provide credit counselors who negotiate on your behalf to reduce your interest rates and save you money as you recover from your personal debt crisis.
2. Debt Consolidation: As the name suggests, debt consolidation is a method of consolidating multiple debts into a single payment. Many times, this allows extreme debtors the ability to combine credit card and consumer debt into one monthly payment and stop the cycle of forgotten debts, late payments, and other penalties. A word of caution, however. If you choose debt consolidation, over time, if you continue to pay the minimum required, you will likely end up paying an exceptional amount of interest. If you go this route, make sure you keep debt reduction your number one priority. 
3. Debt Settlement: Debt settlement can be used if you have defaulted on your debt payments and are delinquent on your debt repayment. A professional debt settlement company can provide you with a debt settlement solution. Upon your initial approach to a debt settlement company, you will be provided with a negotiator who will evaluate your financial condition and negotiate with your creditors to reduce the amount of your outstanding debts by up to 40% to 60%. Again, this is an extreme option, and will likely negatively impact your credit score. 

Of course, if none of the above extreme options work for your particular extreme debt situation, there is a final option for how to stop collection calls, and that is declaring bankruptcy. Bankruptcy is the ultimate extreme measure. The legal procedure involves the local bankruptcy court and tarnishes your credit score for at least seven years. Bankruptcy can make it difficult or impossible to qualify for any mortgage, loan or credit cards and in some situations could even impact your employment prospects.

Photo By: Images of Money