Each month, you probably receive several bills in your mailbox or email inbox. Some are inevitable such as utilities and rent and/or mortgage, but others you wish you could get rid of. There are several different routes you can take in order to payoff these bills.
One way to payoff bills is to consolidate them into one loan. Obviously this will reduce the number of bills you have to pay, but that one bill will be significantly large. It may be possible to consolidate your debt into a loan that has a lower interest rate than your other bills, but then again, the interest rate could be higher. If your debt has been increasing, you may not qualify for a debt consolidation loan or at least one with a good rate. Also, it is generally not a good idea to pay off debt with more debt.
Another way to payoff bills is to declare bankruptcy. This is a drastic measure that should be reserved for drastic situations. Talking to a debt counselor or a reputable bankruptcy attorney and doing research on the matter can help you know whether your situation could be helped by a bankruptcy.
If a debt consolidation loan and bankruptcy aren’t the right options for you, another option would be to agree to a debt management plan. This type of agreement allows you to pay only one bill to the debt management company who will then disburse the money to your various creditors. Besides the convenience, another benefit from a debt management plan is lowered interest and fees on many accounts.
Regardless of what step you take, there are options available to you to payoff bills and get out of debt.
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