If there is one thing that we all hate, it is debt. The problem with having arrears is the permanent nature of the situation. No matter how hard we try, it is almost impossible to pay back the money in a timely fashion. Most of us would have to win the lottery or hope for a huge windfall before we could even dream of taking off the shackles. Well, that’s what we think, anyway. The truth is that there are tips which can wipe the slate clean pretty quickly. There are repercussions, and some of them aren’t for everyone, but they do exist.
So, here are the tips that will help people like you and I clear our debts.
Negotiate A Settlement
What most people don’t realise is that the individual in debt holds power in negotiation talks. Okay, maybe they aren’t as powerful as they need to be to clear the debt forever, but a small amount of power is enough. The reason for this is that debtors hate the idea of losing money. It’s the worst possible outcome, which is why they entertain the idea of a payment plan. Quite simply, a plan is a means for people with debts to pay them back in a manner that suits their finances. As long as you lay it on thick and exaggerate the situation, they will start to cut the bill in half. This tactic should get the sum down to a manageable figure that you can pay off as soon as possible.
File For Debt Relief Order
A DRO is for those of you who are struggling to keep up with any repayments, and who don’t have any money left over to live. The specifications for applying are pretty strict, so you’ll need to have less than a grand in savings. Also, the debts have to be smaller in value than £20,000, plus you must have no more than £50 a week in income. If this sounds like your situation, the order will stop you from paying back the creditors immediately. As long as everything goes to plan, the debts will cease to exist after one year.
Consider Chapter 7
Now, lots of people won’t like the idea of filing for bankruptcy, and for a good reason. There is no doubt that it does have side-effects, such as ruining your credit history. However, the people that do file Chapter 7 also get advantages such as writing off unsecured debts. What does this mean? In layman’s terms, it means that everything from a typical bank loan to credit card arrears will disappear into thin air. Student loans survive, as do any debts with securities such as a mortgage. Still, finally eradicating credit card payments is worth considering it alone.
Leave The Country
Don’t dismiss this out of hand until you know all of the facts. Sometimes, debt can build up so much that it ruins lives. That’s a fact. If your life is in disarray, a fresh start might be the order of the day. Simply put, it wipes the slate clean as none of the debts follow you, including student debts. Creditors that don’t receive payment after a few years give up and call it a day.
Extreme it may be, but it might also be your only option.