Debt Reduction

Written by Amy Hall
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Debt reduction is an issue for many American families these days, as the amount of debt keeps climbing per household. The average family owes about $8,000 on their credit cards, and that does not include such bills as car payments and mortgages! We are living in a constant state of panic over bills that we don't have the ability to pay, and that in itself is an awful feeling.

Getting Help With Debt Reduction

Most people have at one point or another in their lives fallen behind financially, whether it is due to job loss, divorce, death of a spouse, or illness, the effects can be devastating. Not only does it take a toll on your mental state of mind, but the financial stress can cause you to become physically sick. It is no wonder that many people think that bankruptcy is the easy way out of their financial messes.

You may think that the way to get out of debt is to file bankruptcy. However, that is another big mark on your credit that can last from seven to ten years! You really should consider all other debt reduction options before you go the bankruptcy route.

Things You Can Do Now That Will Help

So many of us are afraid to even tally up what we owe to our creditors because we are terrified of what the total amount will be. But the best way to really take a step in the right direction is to take an honest look at what you owe. Once you face it head on, you are taking a proactive approach to debt reduction and you can begin to reclaim your life.

If you feel that your total debt is too overwhelming for you to pay back, you might want to consider talking with a professional debt counselor who can outline your options to you. He or she may suggest that you sign on with a credit counseling agency that can help negotiate with your creditors on your behalf. By doing this, you will only owe one payment each month, and the agency will dole out the money to each creditor that you owe.

If you can avoid bankruptcy, you should try to do so at all costs. Bankruptcy may seem like a way to get a fresh start, but it leaves a black mark on your record for up to ten years! Sure, you may be able to get credit afterwards, but you will be charged outrageous interest rates. And if you plan on renting or buying a house during that ten year period, you may not be able to without a co-signer to back you up.

Turning It All Around. . .

Let's face it, nobody wants to be in debt up to their eyeballs. It is a scary position to be in and you may feel like the issue of debt reduction is a lost cause. But keep in mind that there are many viable options out there that can truly help you to turn your financial situation around.

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