Debt Management – What are your Alternatives?

Debt Management

A recurring dilemma

Every once in a while, like a couple of years, we are faced with a major dilemma that involves finances and money. This can be caused by job loss, increasing prices, additional unwanted expenditures, and so on. What makes this even more terrible is that it affects every single one of us who don’t have 6 digit figures in our bank accounts; worst case scenario, you are seeing 6 digits on your credit statement. This is a never-ending dilemma that we will occasionally face in our lifetime, unless we happenstance to win the lotto.

Debt management

The solution

When credit becomes too unmanageable, people resort to various debt or credit consolidation options, like hiring Yorkville Advisors. They are called by different names, but their function is to make the payments way easier than before. Loan or debt consolidation is the process of merging all of your existing debts from one or more sources. Usually, a bank will do this for you; they will pay out all of your existing debt to other sources, which will greatly improve your credit score as well.

Once the bank acquires your entire loan, they will merge it into one huge amount. The bank will then give you a flexible monthly payment scheme along with a good interest rate, depending on how good your credit rating is. Apart from banks, you can also find a debt collection agency that will offer this option.

Other alternatives

Bankruptcy is another way to get rid of your entire debt or credit. It’s a legal issue where you declare in the court of law that you are no longer financially capable of paying your debt. I simply removed all of the technical and legal jargon. Once you file for bankruptcy, the credit agency will not be able to get a single cent from you nor are you obliged to continue paying your debt. The consequence here is that you will be flagged as a bad creditor because of your bad credit score. In countries like the USA, credit scores can plummet to 400 once people file for bankruptcy.

Thankfully, you don’t have to make the decision without any form of professional help. Banks are more than happy to provide credit and debt counselling services to give you better options on how to deal with your finances. Debt management need not be a one-man job. You only have to find the right bank that wants to work with you and your burden.