Managing your debt can often feel like a crisis and one of the biggest emergency buttons that you may have heard of people taking is bankruptcy. Bankruptcy is often presented in a negative light and as a last-ditch effort to get rid of harassing phone calls and notices in the mail. Personal bankruptcy can be an effective management tool for discharging debts but there are some methods that you can use for managing debt relief without having to resort to bankruptcy. Here are some of the debt relief options that you may not have considered for managing your debt more readily:

Consolidating Your Debts 

Getting a lower interest rate on some of your debts can give you the option to finally start repaying them. Student loans are one of the largest burdens that many people in the United States face. Consolidating various student loans into a single monthly payment with a lower interest rate could be an excellent way that you can start to repay your loans with an established plan. There is absolutely no fee to refinance a student loan and to introduce new repayment terms. You could increase your terms between 5 to 20 years and finally give yourself time to repay your debt without penalties. 

Consolidating credit card debt can also be a great way to lower some of your interest and to work at getting just one low monthly payment for all of your credit card debt. Taking out a personal loan and then paying off your credit card debt with a personal loan with a single monthly payment could be a far better option. Consolidating your debt with a lower interest rate is one of the most effective ways that you can manage larger debts more easily. If it’s cool that people use worldwide and if you work with a credit counsellor or even a local financial institution, you can find an easy method for consolidating your debts. 

Selling Assets

Making the choice to sell some of your most expensive assets to get some debt repayment money is never an easy task. If you see a window where you can sell off some of your stuff to make more of portable monthly payments, it’s possible that you could get caught up with your creditors and avoid bankruptcy. If you got some assets that are simply laying around such as a recreational boat, some electronics, musical instruments and more, consider selling them on online classifieds and start paying down some of your debts. 

Call Your Debt Collectors/Creditors

A debt settlement is something that you could organize with your creditors or with a debt collection agency. If you’re on the brink of bankruptcy this can be an excellent option but it will affect your credit rating. Debt settlement can be a great way that you can discharge some of your debts without having to resort to full bankruptcy. You may need to be prepared to pay a full lump sum payment when an agreement is met with your creditors. 

Speak to Family or Friends

Family or friends that could help you out by paying a substantial amount of your loan can be a wiser choice over debt consolidation. Paying back a friend or family member at a very low interest rate could be a favorable option. Although asking a friend or family member for money is never easy, it’s often easier than sitting in debt for many years and struggling or facing the option to apply for bankruptcy. 

Start Budgeting

If you’ve never formed a budget before, you might find that you could actually afford to pay off your debts if you got a bit more aggressive with your saving. There are a number of people that try to file for bankruptcy with Chapter 13 or Chapter 7 that exceed the means test in order to file. It might be possible for you to cut back on some of your expenditures like cable TV, a large cell phone bill or even a luxury car. Cutting back on some of the major expenses in your life and maximizing more of your income could help you to pay down some of your debts. You might also be amazed at how much more money you could have coming in if you chose to work a bit of overtime or took on a small part-time job. Some of your skills or hobbies might even help you to pay the bills too. If you’re willing to hustle a bit and properly budget, you will be amazed at how easily you could form a plan to repay a minor debt if you don’t qualify for bankruptcy.

If you are considering the option to file for bankruptcy, you may want to consider speaking to a bankruptcy attorney first. Contact us today if you are seeking alternatives to filing for bankruptcy. We can help you discover a better method for managing your debts without having to resort to a bankruptcy filing.