It seemed like a good purchase at the time, but now you are left with staggering credit card payments you really can’t afford. If that sounds familiar, it may be time to take steps toward resolving your debt situation. After all, accumulating massive debt amounts and missing payments can negatively impact your credit and make it harder to borrow in the future. Consider if one of these four strategies would fit into your financial profile.
1. Extra Income
If you are a two-earner household, or if you have some free time in your current schedule, consider taking on an extra job or side hustle to generate additional income. From pet sitting to delivering takeout, there are plenty of opportunities to make some extra cash.
2. Home Equity Loan
Homeownership has some advantages and, if you haven’t damaged your credit yet, a home equity loan could help consolidate and pay off debt. Just use care to resist the temptation to use your credit cards. in fact, cut them up so you can’t run up high balances on top of your loan payment.
3. Debt Settlement
You may be able to settle your debt for as little as half of what you currently owe. Look for a reputable company like Rescue One Financial to help you navigate the process and negotiate with lenders and collection agents.
4. Bankruptcy
When you can’t see any other way out, bankruptcy may be your only option. It can leave a long-lasting mark on your credit, so try other methods first before seeking information on this one.
It doesn’t matter how you got buried under your current debt. What matters is making lasting change so you can live without fear of collection agents, declining credit scores, and missed bills. If you are struggling to manage your current payments, see if using one of these strategies can help.
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