What you should know about your alternatives.
1. The "Do it Yourself" Solution It's very common to keep making those minimum payments until you are juggling payments or looking for more low interest offers just to keep you hanging on the edge. This usually turns into a situation where you just hope the problem just goes away on its own, which is not likely to happen. With a home equity loan, or second mortgage, a consumer borrows money against the equity in their home and repays it in equal monthly payments for a set period of time. In credit counseling, a client can have their interest rates reduced and be debt free in 5 years. You send your monthly payment into the credit counseling firm, and they distribute that payment to your creditors. In a Chapter 13 bankruptcy, you set up a court approved plan to repay your debts. Under the plan, the court determines your monthly disposable income, which you must pledge to a court appointed trustee , who in turn distributes it to your creditors for up to 5 years. |
