Drowning In Debt? Here Are Some Life Jackets


Times were tough.

You needed a loan, and you needed a big one. Perhaps it was some kind of personal or medical emergency.

Although you needed the loan badly, you were still pretty confident about your finances at that point. You were comfortable with the terms to which you agreed.

You had no doubt you’d be able to deal with the monthly charges. The loan was just there to help you get back on the financial ladder. You’d be able to pay it back in full soon enough.

But things didn’t quite work out that way.

Maybe you lost your job. Maybe another emergency occurred that drained your finances. Maybe you’ve found that you agreed to harsher terms than you thought.

Whatever the case, you’re now completely overwhelmed by the debt. You have a feeling that things are only going to get worse.

You know that you need to sort out this problem as soon as possible. But what are you to do when your income isn’t going to cover it any time soon?

Here are a few of the things you can consider. While they’re not preferable to being able to pay off the debt, they can all ease a lot of stress in their own way.


Debt Settlement


This is a way of reducing the amount of money you owe.

It will involve negotiating with the creditor or with the collection agency representing them. This, of course, isn’t going to spare you from a hit to your credit score.

You were still unable to pay back the money that you agreed to pay back. Other people may not want to settle the debt because it involves not paying back everything you owe.

Still, it’s an option you’ll want to look into if you’re desperate. Creditors know that some money is better than no money, and may be more willing to settle than you think.




This is the option that a lot of people consider because they have some misconceptions about it.

But it’s a last resort, one that you should only take if things are really bad. It’s important that you understand as much about bankruptcy as possible.

For certain situations, it can be the “ideal” solution. And it’s not an option you can only take if you have no money. It’s not going to result in bankers taking everything you own, either.

But you must understand all its implications before you decide to take this step. Make absolutely sure it’s right for you.



Debt consolidation is perhaps less extreme than the last two. Anything that doesn’t seem extreme is going to be attractive to people in such a situation.

But consolidation really only applies to those who owe several creditors. A debt consolidation company will arrange for the purchase of your debts from your creditors.

You will then owe that company, but the debts will be turned into a single debt. This can reduce the interest rates and other fees which increase the burden of debts.

It also, of course, makes everything easier to understand. Again, this won’t let your credit score escape unscathed. But it doesn’t represent a total failure to pay back the debts!

So what are you doing to pay off your debt?  Have you considered using one of the three options I shared above?  Feel free to share your thoughts, and comments below.


Similar Posts

One Comment

  1. Sometimes unfortunate things happen in life, and you need help figuring out how to manage your debt or get out from under it. There are services or programs that can help. I definitely recommend doing your research and talking with a professional to see which is the best option for you. Great information, thanks for sharing!

Leave a Reply

Your email address will not be published. Required fields are marked *

15 + 10 =