3 Solutions to Debt Recovery You Haven’t Tried Yet

By Aman

December 9, 2022

Getting your hands on some extra money would be amazing, especially if you’re in debt, but sometimes it seems like it’s impossible to get anywhere near the state of being in debt. Well, don’t give up hope just yet; there are solutions to debt recovery that can make a difference in your situation. Here are three solutions to debt recovery that could help get you out of debt sooner than you thought possible.

1: Hiring a Debt Settlement Company

Debt settlement companies are not for everyone, but they can be an effective solution for people who have a lot of unsecured debt. There are three solutions to debt recovery:

a) Debt Settlement – If you have a lot of unsecured debt and want to get it resolved quickly, this is the best option. Debt settlement companies will negotiate with your creditors on your behalf and help you create a plan that includes monthly payments and interest rates. They will charge a fee as well as a percentage of the amount of money that is negotiated on your behalf with each creditor. It’s important to remember that if you use debt settlement services, there is no guarantee that any part of your debt will go away. In some cases, using a debt settlement company may lower the total amount owed by just paying off some accounts instead of others.

b) Debt Consolidation – Debt consolidation services may also be able to help reduce the number of loans or credit cards to save on interest

payments and make one monthly payment per month easier. However, just like debt negotiation services, there’s no guarantee anything will happen with your debts through this process either. It may just consolidate them into one large loan at a high rate of interest instead.

c) Debt Settlement vs. Debt Consolidation – Debt settlement usually results in something happening to debt, while debt consolidation usually just changes how the debt is handled without actually resolving anything. When considering which service you need, ask yourself what would happen to your debt. Will I still owe the same amount after negotiating with my creditors? Will I still owe more because I consolidated all my debts?

2: Creating a Debt Management Plan

A Debt Management Plan is a debt recovery solution for people who are unable to pay off their debts but have the means to pay them back over time. The plan usually requires a monthly payment of your disposable income and is tailored specifically for your debts. A Debt Management Plan has been shown to reduce the average person’s total debt, so it’s worth considering as a debt solutions option. It may also lead you into bankruptcy or an individual loan agreement with your creditors. If these debt relief options don’t seem feasible, consider contacting a professional debt counsellor that can help you create your own customized Debt Management Plan.

3: Declaring Bankruptcy

Bankruptcy is a debt recovery solution that can help you get back on your feet. It releases you from the majority of your debts and allows you to start over with a clean slate, so it’s an important consideration if you’re struggling with debt. Of course, bankruptcy has its downsides, namely that it will stay on your credit report for up to many years and may affect certain things like your ability to get hired in the future or buy a home. So if bankruptcy isn’t right for you, there are other options out there. You might be able to set up an income-driven repayment plan with the government or work out an informal agreement with your creditors.