3 Tips to Rectifying Debt without Filing for Bankruptcy

Due to the increased cost of living and the very little increase in pay that many receive from employers, it is no wonder that people resort to living off of credit cards to help them make ends meet. This is a dangerous game to play but many feel as if they don’t have any other choice but to take out credit cards to pay for things like food, gas, clothing, and other necessities. Credit card companies are making a killing by charging high interest rates and other fees which makes it almost impossible for consumers to pay off their debts. It is no wonder that people then find themselves in such financial predicaments that they are unsure of what to do and they turn to bankruptcy for a way out and a fresh start. However, there is an an alternative to filing chapter 7 and we will share some tips in this article that will help you rectify your debt without having to file for bankruptcy.

• Pay off debt. This tip is obvious and one that you have probably been trying to accomplish for some time now. Have you considered selling some of your assets to help pay a debt? What about working overtime or picking up a second job that will help you pay off some of your bills? The first step to avoiding bankruptcy is to do whatever it is that you can to pay as much of your debt off as possible. Look at your budget and cut out incidentals that you don’t need such as cable television or unlimited data in your cell phone plan. It may be cumbersome to do so, but shop around for a better rate on services such as your cell phone. You can find ways to save money and every dollar will make a difference.
• Ask creditors for assistance. Yes, this is possible! I know that it sounds unbelievable to ask your credit card company for some help in paying back your debt, but many companies have hardship programs that allow you to pay back debt over a period of time at a lower interest rate and sometimes a lower minimum monthly payment. This is a great way to try to handle paying your debts on your own without having to get others involved to help you resolve your dilemma. If your creditors are not helpful, consider seeking out debt counseling.
• Consumer credit counseling can help. Before you can file for bankruptcy, it is now required that you seek some kind of credit counseling. They will help you create a budget that you will need to stick to in order to pay off your debts and not have to file for bankruptcy. By working with a credit counselor, you will be able to find some areas in your budget that you can put towards paying off your debt. When you have a plan in place, you will feel much better about your financial affairs.

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