There are times in everyone’s life when it becomes difficult or impossible to keep up with monthly debt payments. If you do miss a payment, you could be hit with late fees or higher interest charges in the future, which makes even harder to stay current on a debt. What are some options for those who are looking to get out of their current financial crisis?
Ask Creditors for Forgiveness
The first option for those who are looking to get out of debt may be to ask creditors to forgive some or all of their current balance or balances. If a creditor thinks that there is a good chance of not getting paid all that it is owed, it may accept a partial payment instead. Alternatively, a creditor may allow you to make partial payments or interest-only payments until you get back on your feet financially.
Sell Physical Assets If Possible
If you are trying to get out of a car loan, it may be worthwhile to sell the car or trade it in. While it may not cover the entire loan, it may cover enough of the balance that you can pay the rest of it with cash that you already have. In the event that you have a lease, you could transfer it to another person assuming that you get the blessing of the leasing company.
Filing for Chapter 13 bankruptcy allows you to retain some or all of your property while reorganizing your debts. Payments are made for a period of three or five years, and after the repayment period ends, remaining unsecured debt balances may be discharged. In the meantime, it may be possible to renegotiate the terms of a mortgage or surrender a vehicle without owing anything in the future.
Look for Ways to Save Money
There are likely many ways that you can cut costs. For instance, you may want to ditch traditional cable for Netflix or Hulu. It may also be a good idea to rent a room in your house or take on a roommate to save on your monthly rental costs.
If your bills are too much to handle, it is critical that you create a plan to solve your financial issues. Otherwise, it could lead to excess stress and the physical problems that come with it. Talking with an attorney or a financial adviser may make it easier to create a plan that fits your needs.