Positive Alternatives To Debt Consolidation
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Posted On :
Nov-30-2009
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Article Word Count :
533
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When you are drowning deep in the ocean of debts, consolidating your debts may seem to be an easy option for you. However, it is not always the best solution. Therefore, it is always wise to know about the alternatives to debt consolidation. Bills and debts always have a careless and indifferent attitude towards your problems.
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When you are drowning deep in the ocean of debts, consolidating your debts may seem to be an easy option for you. However, it is not always the best solution. Therefore, it is always wise to know about the alternatives to debt consolidation. Bills and debts always have a careless and indifferent attitude towards your problems. They keep rolling in adding to the already mounting debt – they don’t care whether you have lost your job, fallen seriously ill, met an accident, or met any other misfortunes. However, if you closely analyze your situation, you may find that your financial crunch is a temporary condition and that you have some better alternatives to bring your finances back on track.
Don’t Ignore Your Bills
When it comes to dealing with mounting debts, the worst thing you can do is to keep ignoring your bills. This will only result in a devastated credit score, higher interest charges, late fees, and other penalty charges.
Get The Right Picture Of Your Current Situation
Get a notepad and write down all the figures related to your income, expenses, and the debts you owe to different creditors. In order to find out the possible alternatives to debt consolidation, it is very important for you to get a true picture of your current financial situation. For example, you can write down your assets and liabilities in order to create a personal balance sheet. These days, you can also download pre-printed forms for this purpose from the official websites of various banks, credit unions, and other independent lending institutions. You can also get this form from your local financial institution.
Debt Repayment Strategy
Once you understand your situation, the next step is to develop your own debt repayment strategies based on how much you can afford to pay per month.
Talk To Your Lenders
One of the best alternatives to debt consolidation is to contact your lenders directly. Show your personal balance sheet along with the proofs of your income and expenses and other financial details. The idea is to convince them that you are not in a situation to pay the current monthly payments, but you can afford to pay a little lower amount. Request them to eliminate late fee and penalty charges. Most importantly, you must ask them to lengthen the repayment period – this will automatically reduce the monthly payments. Lenders are only interested in getting their money back. So, if they are convinced with the hardship you are going through, they will definitely co-operate.
Always remember, a verbal agreement is legally no agreement at all. Therefore, while you are exploring the possible alternatives to debt consolidation, it is important for you to make sure that you get everything in writing – especially when it is about a revised repayment schedule. Once you get the new schedule for repayment in writing, you can go ahead and start making the payments. This time, you are not supposed to make any defaults. If you do, you will only put yourself into a much deeper problem.
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Article Source :
http://www.articleseen.com/Article_Positive Alternatives To Debt Consolidation_6110.aspx
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Author Resource :
While consolidation might not always be the best solution to your debt problems, there do exist certain viable alternatives to debt consolidation. The facilities of online debt consolidation can help you perform the procedure online by logging on to the website of a lending company.
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Keywords :
Debt Consolidation, Online Debt Consolidation, Debt Consolidation Loan,
Category :
Finance
:
Debt Consolidation
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