Being in $80,000 of debt

It starts off small. Maybe a couple credit cards, a personal loan, or monthly car payments. Pretty soon, you can’t keep up. So you get more credit cards, borrow more money, just so you can pay off your existing debts. Next thing you know, you are $80,000 in hole, with little hope of paying it off. What now?

The main thing you need to know is that you have options. The worst thing you can do is nothing at all. Sticking your head in the sand won’t make the debt go away. It will only grow.

Debt settlement

Your first option is debt settlement. If you genuinely cannot keep up with the monthly payments, you may be able to negotiate with your creditors to reduce the amount you owe. It’s in the creditors’ interest to consider your case. If you go bankrupt, they may not get any of their money back. But if they agree to a smaller balance and a more manageable payment schedule, at least they will get some of the money.

The biggest downside of debt settlement is that it will hurt your credit score. However, if you are struggling with making monthly payments, chances are that your credit score is already damaged. The good news is that the damage isn’t permanent. It will stay on your credit report for up to seven years. After that, no one has to know that you were in financial trouble.

Video: How to Write a Debt Negotation Letter

If you’re feeling brave, you can handle all aspects of debt settlement negotiation on your own. Alternatively, there are companies that will do it for you, for a fee. They will ask you to stop making the monthly payments on your debts and to send them the money, instead. The company will then use that money to negotiate a payment with your creditors.

Debt consolidation

Video: Debt Consolidation Tips

If you still have a good credit score, you should consider the second option – debt consolidation. With debt consolidation, you take out a large low-interest loan to pay off all of your small high-interest debts. You are left with a single monthly payment that is smaller than the total of the payments you were making before. You can save thousands of dollars in interest fees and be free of debt much sooner.

get an $80,000 loan

You can use debt consolidation to pay off all types of unsecured debt including personal loans, credit cards, medical debt, car payments, etc. It doesn’t matter if they’re large or small. As long as the interest rate is lower on the debt consolidation loan, it makes sense to consolidate. As an additional benefit, you won’t have to worry about the late fees that lenders charge when you forget to pay a bill. It’s much easier to remember to make a single payment once a month than to keep track of scores of small payments. It’s another way that debt consolidation can save you time and money.

The amount that you can borrow depends on your personal financial situation. Call the number above to speak to a qualified consolidation expert who can answer all your questions.