- Posted April 25, 2022
Last-Ditch Efforts You Can Make To Deal With Debt - Certified Financial Planning Advice
If you are not careful, your debt can get out of control. Your debts can be remedied; however, it will take some work. If you are finding it hard to deal with our debt there are last-ditch efforts you can make such as selling assets, filing for bankruptcy, and debt settlement. Talk to a certified financial planner for advice for your specific situation.
Your assets are property you own that contains value, such as a car or jewelry. When these are sold, that money can be used to pay your debts. Selling some assets, like ones that are financed, can also help reduce your debts. There are many methods to selling your assets. An easy route to take would be to post it on the internet and ask friends and family to share to get the word out. Once you have sold assets you should pay off debts that are the highest priority first according to our certified financial planner.
File for Bankruptcy
Filing for bankruptcy can help with many debts by eliminating your obligations. Filing for bankruptcy can help you avoid foreclosure, at least for a time. It also stops lawsuits and can eliminate debt like credit cards or personal loans. Once you file, the court will issue a stay which will prevent creditors or lawsuits from coming after you. Bankruptcy doesn’t stop all creditors or lawsuits, but it can be a helpful tool in dealing with your debt states our certified financial planner.
Not all debts fall under the option for debt settlement, however, this can be an option if you have debts that qualify states our certified financial planner. For example, secured debts like mortgages, student loans, or car loans are not eligible. Debts that would qualify are unsecured like medical bills or credit cards. If your unsecured debts are past due, a lender may be willing to settle because they would rather recoup the cost versus not getting anything from you at all. To settle a debt with a creditor, you can negotiate on your own or hire someone to help you. You can suggest an amount less than what you owe, and the creditor can choose to accept or reject.
If you are finding it hard to cope with your debt, don’t avoid the problem or it could get worse. Start by working on one debt at a time. You can even reach out to a professional who can help guide you in the right direction of settling your debts.
Need some more advice? Check out this article for financial planning advice on how to free yourself from the burden of debt!