Know how to solve debt problems

Are you in debt? Learn how to repair your bad credit and get out of debt quickly with the 5 major ways of solving debt problems. Given below are some of the widely availed financial options that help you to consolidate debt accounts.
Self Repayment Plan: You can reduce your debt burden on your own. Just by assessing your financial status, making an effective plan in clearing your pending debts and executing it successfully you can become debt free. Self repayment plans do not include third party fees but you need to have sound knowledge of different procedures to reduce debt load.
Debt Consolidation Loans: A type of personal loan, with which you can pay your unpaid debts like credit card bills, medical bills and other loans. The loan allows you in making a single payment on your multiple debts, dealing with a single creditor and reducing the outstanding balance. To know more about the debt consolidation loan, check out if you're the right candidate to apply for the loan, the inquiries you need to make before opting for it and the steps you should follow while applying for it.
Debt management program: DMP is a process to handle your debts. This is a method by which a credit counseling agency or a law firm provides debt assistance to manage your debts by reducing the APR. While opting for a debt management plan you should know the right time to opt for it, the process it follows, the advantages and the disadvantages of the debt management plan.
Debt Settlement: It is a process to eliminate your outstanding payments for less than the amount actually owed to your creditors. The process not only stops you from paying the monthly installments to your creditors, but also reduces your debts by 40% - 60% of the total amount. You can start a debt settlement program in two ways, by directly dealing with your creditors or by contacting a debt settlement company. The debt settlement companies usually deal with the creditors on your behalf. Apart from analyzing the advantages and the disadvantages of debt settlement, do not forget to choose the right time to settle your debts.
Bankruptcy: Bankruptcy is a legal proceeding which helps businesses and individuals to either repay or eliminate their debts. Bankruptcy is filed when the financial health of a person is not stable and he declares his inability to pay his debts. Bankruptcy is of 3 types- In case of Chapter 7; debt is recovered in exchange of property/assets belonging to the debtor. In Chapter 13, known as "reorganization", the debtor proposes a repayment plan and Chapter 11 is not widely applied for. Bankruptcy saves a person from facing any further legal action but it does not exempt him from paying back all of the debts.