4 Tips for Handling Extreme Debt as Bills Come Due
Extreme debt can make paying bills on time that more difficult. If you have a lot of debt, you’re likely worried about how you’re going to pay back everything and still have money left over for your day-to-day survival.
These four tips can help you handle extreme debt better as bills come due.
Consolidate Loans
Loan consolidation involves combining your outstanding debts into one so that you can make a single monthly payment to pay back these debts gradually.
If you need to take out additional loans, you can also apply for a consolidation loan that allows you to purchase multiple loan products and combine the payments into one.
Consolidating makes it easier for you to keep track of what you owe so that you won’t have to scramble to make multiple payments to different lenders each month.
Liquidate Major Assets
By liquidating and selling assets on the public market, you can receive cash or cash equivalents to apply toward your mounting debt.
These assets may include any vehicles, real estate or investments that you have.
Liquidating your assets may also be necessary if you choose to file Chapter 7 bankruptcy and want to use the money to pay back lenders.
Sell Your Home
You may need to sell your home to avoid foreclosure. Having a foreclosure on your record can do even more harm to your credit and create difficulties in getting mortgages for future homes or applying for any other type of credit.
Anyone who chooses to sell a home to avoid foreclosure can find a buyer who specifically buys homes that are about to go into foreclosure to make the process easier.
After selling, you should then consider low-income housing for rent until you are able to get back on your feet.
Hire a Bankruptcy Attorney
A lawyer who handles bankruptcy cases can advise you on the best course of action to take.
The attorney will let you know the specific bankruptcy chapter that you should file under so that you can proceed through the process easier.
Your petition for bankruptcy can be submitted to the U.S. Bankruptcy Court by your legal representative.
Your lawyer can also meet with your creditors to try to come to an agreement that benefits all parties who are involved.
If there are any solutions that may save you from having to file bankruptcy, your attorney will let you know.
Learning the right ways to manage your debt can eliminate much of the difficulty from paying your bills.
It’s important to consider all your options so that you can make the best choices about your finances.
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Category: Debt
