If your financial situation has you thinking about bankruptcy, you should evaluate all of your options before filing. You may find that bankruptcy relief is exactly what you need. The results can provide a way out of debt and a fresh financial start. In some cases, though, bankruptcy may not be best for you depending on your individual circumstances. You may wish to consider some alternatives before pursuing bankruptcy.
- Negotiate with your creditors. One of the first things you can do is to simply contact your creditors and begin the process of negotiating your debt. If you have income and some assets that you may be able to sell off, negotiating with those you owe may give you the time you need to get back on your feet. It can also eliminate those annoying debt collection phone calls.
- Contact a credit counseling agency. Many people are not comfortable with negotiating with creditors or collection agencies. If this is you, contact a credit counseling agency. These are usually nonprofit organizations that will help you negotiate your debt with your creditors. A credit counseling agency will represent you in all negotiations with creditors so that you do not have to get involved.
- Debt management plan. A counseling agency can help you develop a plan to repay your debt. This type of plan is very similar to a Chapter 13 bankruptcy. The advantage to a debt management plan is that you do not have a bankruptcy recorded on your credit history. If you make all of your payments on time, you can remove all of your debt and begin to rebuild your credit history.
- Consider a consolidation loan. If you are able, consider consolidating your debt, or at least most of it, into one lower payment. There are several options, but if you are a car owner, a car title loan may be the easiest. If you have equity in a vehicle, you can use it as collateral for a loan. Embassy Loans is a leading provider of car title loans and does not require a credit check to begin the process. You could gain access to your cash in as little as an hour. Car title loans are short-term loans and once paid off; you could be debt free.
5. Combine strategies. You might benefit from taking out a car title loan and paying off some of your debt while at the same time contacting a credit counseling agency to help you negotiate debt repayments. You might pay off your highest interest debt first with the proceeds of your car title loan and then arrange to pay off the rest.