Nowadays there are so many options to eliminate your unsecured loan. But still there are few debtors those who are not aware of such options; they think that bankruptcy is the only way to get rid of financial loans.
The Federal government has introduced such options for the betterment of the debtors. Now it is duty of the debtors to take part in the programs to clear all their remaining liabilities. Sometimes the consumer needs credit counseling to understand the advantages of the programs. The debtor should try to compare how bankruptcy process with debt options. How the plans are going to help you in getting rid of the unsecured debts.
If you file for bankruptcy then everything goes in hands of the court, it may take years to sort out the case. This is an emotional decision where you will be left with no choice at the end. You will be guilty for your wrong judgment. The banks will be not ready to provide you loans because of your so bad credit scoring. It may whole life long time to be back on the track. Bankruptcy is not at all a wise choice to fix your debt problem.
The options are very popular because of the real hard work the relief companies put across to bring people out of debt. The programs are available in the market are of all kinds. Just the debtor has to choose the best one among them. The firms are going to guide you in solving your financial issue. You need to hire the most well known company who can convince your creditor for the loan reduction plan. It may take five six years to clear all your remaining debts. The most important thing is you will able to get back your credit scoring on top after to start working with debt firms. If you want you can apply for new loans in the bank.
Now you are ware with the advantages of the debt options and the disadvantages of the bankruptcy. Well the choice is always yours; still it is advisable that debt administration is the best way to eliminate the unsecured debts.
As the year comes to an end, once again people (including myself) have resolutions to make next year better than this year. The two most popular resolutions involve physical fitness and fiscal fitness. Most of us have goals to lose weight and to lower our debt (increase savings, etc.). Usually, the physical fitness aspect of our resolution means to eat less and exercise more. The course of action is simple. The key is to get started or as that famous slogan from that popular athletic apparel company says, “Just Do It”.
For our personal finance, it is a bit more different. It should not be as complicated. As I progressed through investments, real estates investments, eliminating credit debt, increasing cash flow, etc., I have (along with my wife) have practiced to the best of my ability these principles. As the samurai warrior or spartan soldier have a code of ethics (or Bushido code), it is effective to have principles that we should apply to our personal finances. Here are some:
Never listen to financial advice from someone making less than you. This may seem cruel. But, would you go to seek medical advice from a plumber? (or vice versa) Even though they may be the nicest and best plumber in the world, it would make sense to seek medical advice or treatment from a medical professional (e.g. a doctor). Why would you hinder yourself by seeking financial advice from broke folks? You do not have to avoid them. You can still (and should) do other activities such as golfing or watching movies with these folks.
Do not borrow money from anyone especially relatives. Beside purchasing a house (which it is possible to save for), you should not take out loans or use credit. Now, it is especially to remember this principle when borrowing from relatives. Unless you want to change or hurt that relationship, you should not loan nor borrow money from your dear relatives. Remember: The borrower is enslaved to the lender. Money is important but it is like fire. It can warm a house or burn a house. When borrowed or loaned to relatives, it will burn that relationship.