The decision to file bankruptcy is one oftentimes met with anguish and frustration. After all, bankruptcy signals that you failed, at least where finances are concerned. But, it is time to look at bankruptcy from a new perspective and understand that this step is one that can actually benefit your life and provide a fresh start when the wrong financial path was taken. Financial turmoil happens to the best of people; bankruptcy provides that hope. However, before taking the plunge and calling a lawyer to file for bankruptcy, try these four alternatives that may ease some of the financial burden you experience and help you avoid this step.
Bankruptcy Alternative 1: Start a Savings Plan
Even when money is tight, it is possible to save a few dollars each week through various strategies simple enough for anyone to utilize. Although it may not seem like a large sum of money, it quickly adds up to a nice chunk of change that can be used to settle some of your debts. Put all of your change into a jar each day, including pennies, dimes, nickels, and quarters. In just a week, you can save a few bucks using this technique alone. The more apt to saving money that you are, the larger your savings will become in a shorter amount of time. Cut back on some of your expenditures, such as dining out and entertainment, to further save more money.
Bankruptcy Alternative 2: Debt Consolidation Loan
Debt consolidation services combine all of your debts into one payment that is affordable to your budget. You’ll need to hire a consolidation company if you wish to use this bankruptcy alternative. With a consolidation loan, you’ll stop annoying creditor calls and letters and minimize stress as you work to alleviate the debts that you’ve accumulated. Individuals who consolidate their debts also learn tips and techniques that help them better manage finances in the future. Thousands of people use the debt consolidation loan each year and enjoy satisfactory debt relief as the result.
Bankruptcy Alternative 3: Asset Liquidation
Any items of value that you own are eligible for asset liquidation, a strategy that sells off your personal possessions to help you gather funds for a specific purpose. In this case, you’re liquidating assets to help yourself get out of debt. Stocks and bonds are easy to sell if you own them and can bring a considerable amount of cash your way. Cars, antiques, and many other items of value are eligible for liquidation. Hire a professional liquidation expert to assist with the process. It takes a couple of weeks to complete the asset liquidation process, though is an affordable bankruptcy alternative that may provide just the right amount of cash to ease your worries.
Bankruptcy Alternative 4: Debt Settlement
Similar to debt consolidation, debt settlement is a fourth option for individuals who are in over their heads in debt but who want to try to avoid filing for bankruptcy. To use a debt settlement plan, you must negotiate a settlement plan with each lender that you have outstanding debt. Most will drop off interest and late fees in exchange for a settlement payment. Once the money exchanges hands, you’re free and clear of this debt! A debt settlement company can help you file this option, contact creditors and work out the best settlements possible.
Debt Alternatives May Help You Get Out of Debt
The ‘B’ word is scary for anyone facing the situation in their life. However, it can provide individuals a fresh start when finances and debt have simply gotten out of hand without any foreseeable break. But, before you call a law firm to discuss bankruptcy, consider the alternatives above to get yourself out of debt without taking this step. Many people successfully accomplish debt relief using these alternatives. However, rest assured bankruptcy is there and can and will help if these options are not enough to pull you out of debt.