How to Resolve Your Debt Problems

If you are struggling with your bill payments then its time to get expert’s advice to help you to come out of the crisis and to be debt free. This resource will make you aware of various types of debt problem and also will help you to choose the best option and way to get out of debt problems.

Listed below are the debt problems along with the solution that you must take in order to come out the debt problem.

• Credit Card Bills/ store cards - If you are struggling with credit card or store card bills because of the rising interest or mounting credit card debt rates, you may try out credit card debt consolidation or bill consolidation. You can consolidate your multiple credit card bills into a single monthly payment with reduced interest costs. If you cannot make the minimum payment on your credit cards, then you should opt for debt settlement program. A debt settlement program will help you to come out of debt problems by reducing your outstanding balance.
• Student loans - In this plan you can take out a single personal loan in order to pay off the student debt. Then you are required to repay the debt consolidation loan through lower monthly payments. Student debt consolidation loan is the most common method for student loan problems. But, in this plan it is better not to include federal and private student loans under the same consolidation loan as because you may lose the benefits related to federal student loans.
• Medical Debt - You can go for debt negotiation or settlement in order to clear you medical bills. A debt relief company can negotiate on your behalf with the hospital or doctor to reduce your bills by 40-60% of the outstanding medical debt. In this program you make a single payment each month to your debt consolidation company which then pays out the funds amongst multiple creditors.
• Utility bills - If you have past due utility bills, you can consolidate them when you cannot afford the monthly payments. Then you can also settle the payments on utility bill depending upon your dues. Otherwise, you may lose the services on electricity, gas, telephone etc.
• Payday loan and Personal debt problems - Debt settlement helps individuals with debt problem on personal loans but it is more suitable for those who’d like to reduce the debt amount they owe. In this program you can consolidate payday loans and other unsecured personal loans if you’re unable to meet the payments.
• Collection accounts - These include debts which are sold off to collection agencies. If you’re getting collection calls, the first thing that you should do is to ask for debt validation. After the debt is validated and you are sure that you owe it, you can opt for debt settlement to get out of debt. If you would like to reduce the interest payments only, then you may go for debt consolidation.
• Tax debt - There are few firms that can negotiate with the IRS and can help you consolidate your tax bills. The good method to get rid of federal/IRS tax debt problems is to go for a Self repayment plan. In this plan you have to assess your financial situation and prepare a well-planned budget in order to pay off the tax dues.
• Auto loans (repossessed) - Initially an auto loan is a secured loan but after the vehicle is repossessed, it can be considered as unsecured credit. Like most unsecured loans, auto loans (repossessed) can be settled for less than what you're supposed to pay.
• Multiple debts - If you are facing financial crisis and have multiple bills (credit/store cards, medical bills, payday loans etc) which are impossible to consolidate or settle altogether, it's better to go for credit counseling. The counselor will assists you in planning a budget so as to control your spending and help you to invest more towards bill payments.
  

Now, depending upon the type of bill you are required to pay, you may pick the most suitable option to get rid of dues and restore your finances back on track.