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Many people have debts, but what happens when these debts become too large to pay off? What if you can no longer afford repayments? Fortunately, there are still solutions for getting out of such debt. Here are a few options to consider that could help you to get back in the clear.
Let your creditor know your situation
In some cases, you may be able to pay your debts back in smaller installments simply by telling your creditor your situation. If you’re going through a rough financial patch, you may even be able to delay certain payments with a bit of negotiation. The worst thing you can do is ignore your creditor’s demands for payment altogether. This will only result in additional interest charges and eventually even result in court intervention, which could mean having bailiffs coming round your house and seizing your possessions.
Consolidate your debts
In other cases, it may be an issue of juggling too many debts. This could be causing you to miss payments and resulting in debts piling up. A debt consolidation loan as available from moneyplus.com could be the solution to this. Such loans generally don’t require lenders to have a high credit score. That said, taking out another loan could just result in extra debt for some people.
Get help from friends and family
Your friends and family may be able to help pay some of the debt off. Even if they’re only willing to lend you the money, it could be much better than taking out another loan as it won’t have interest and you’ll have greater flexibility paying it off.
Consider a debt settlement
If you can’t pay back the debt and can prove this, you might be able to pursue a debt settlement. This involves getting the help of a solicitor or a law firm to negotiate a payment plan. This could allow you to not pay the full amount, so long as your creditor is happy with this decision. You can compare debt settlement plans at sites like debtsettlement.co. Debt settlements can be made at any stage, although it’s likely to be harder if your creditor has already hired the help of a debt collection agency.
Sell belongings you don’t need
Selling belongings may be a way of raising money to help pay off your debts. If you let your debts build up too much, it’s likely your creditor will call in a debt collection agency who will seize your belongings. Selling possessions yourself beforehand gives you the freedom to choose what you can let go of – you may also be able to negotiate your own prices for these items. Be prepared to make some big sacrifices – your car is likely to be the most valuable item that will put the biggest dent in your debt, although the sacrifice of not having a car may be too much for some people.