Getting yourself into debt is easy, but paying off debt often seems next to impossible. Regardless of how much you pay back, it always seems like there’s another bill around the corner.
Yet paying back those you owe isn’t the only proper solution to getting out of debt. For instance, you can refinance certain loans and consolidate others with loan agencies. This could decrease the amount you owe and quicken your path to debt relief. You could also negotiate with debt collectors. They might seem cranky all the time, but giving them half of what you owe to get them off your back is better than nothing.
If these options don’t work, you could always file for bankruptcy. This semi-extreme measure will more or less erase your existing debt. It will also hurt your credit, lessen chances for loans, and free you of some physical possessions. While it’s a valid solution, you should only use it as a last resort.
How does bankruptcy work, and what are its (many) drawbacks? Wall Street Survivor recently answered these questions and more with a helpful and frighteningly upbeat cartoon. If you’re a person or business with never-ending debt, this life-changing financial trick could help you get your finances back on track.
How do you declare bankruptcy? You’ll actually need to talk to your accountant and/or your attorney to get started on filing bankruptcy. There are numerous forms to fill out for this major financial decision, along with bankruptcy court sessions, debt counseling, and other procedural steps one must take to file any of “the Chapters.” You’ll also want to take stock of your worldly possessions, as most will be sold and lost in the process.
In the end, you’ll find yourself out of debt, but don’t even think about trying to borrow money for a while. It’s not going to happen.