Debt Free Solutions

Debt Free Solutions- Top Solutions

What are your debt free solutions? To get debt free you have a few options. Read over them and decide which is best for you. Maybe you want a debt free loan or perhaps your main goal is to bargain shop for any free debt consolidation offers.

Debt Free Options

Mortgage - A mortgage can free up a lot of your own money so that you will not have to pay high interest rates on it as you have to with other loans. A mortgage is a secured loan- which is good because of this interest thing, but bad because if you can not pay back the loan you won't just look like an idiot, you'll actually lose your house. A mortgage is real money, and is more a trade than a loan, so you will feel better knowing that you aren't just borrowing money. Of all of your debt free solutions I think this is probably the second best...behind debt consolidation.

Debt Consolidation - Not a loan, not a trade, just a way to lower your bills. This should be your first step in learning to live debt free. You can enroll in a debt free program that can show your some debt free solutions. A program will set you up with (sometimes) free debt counseling. Your counselor/consolidator will work with a representative from your bank and together they will negotiate on your bills. The banks are worried that you will file bankruptcy if you are in too much debt, in which case they would not make back any of the money that you have borrowed from them. To get some of their money banks are willing to lower your bills and cut interest rates. Threatening to not pay is a great way to get your bills cut in half. It may seem unconventional, but this strategy can take you a long way toward living debt free.

Loans - Loans are tricky. Some are good; they offer low interest rates and extensive periods of time to pay off. You can get credit card loans, student loans, home loans, and other loans. These are safe as long as you find respectable companies to get them through. Pay day loans need to be avoided at all times. Of all the debt free solutions pay day loans are the worst. They can get you money quickly, often times within 24 hours, but they charge insane interest rates and bank on you not being able to pay back the loan on time so that they can charge you late fees. Most often pay day loans get people more in debt then they were before they started and they are forced to take out more and more pay day loans to pay off their last one.

Bankruptcy - I suppose bankruptcy is an option to escape debt. When you declare bankruptcy all of your unsecured loans are forgotten about, so if you have a lot of those bankruptcy can get you out of them. But bankruptcy is not a form of free debt help and will not help you for a number of years. It kills your credit for about 10-15 years during which time you will only be able to get secured loans, such as mortgages and secured credit cards. Not exactly the path toward living debt free for life.

Before you choose any of these debt free solutions look into free credit counseling. Sit down and talk to a counselor who knows what they are talking about. Don't look for a quick fix and don't fall for them offering free debt relief, because they cannot do everything for you, and if they help you they will charge you for their services. Don't be fooled by their word choice either, debt free solutions are not free debt solutions. Know the difference.

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