I Am Buried In Debt. What Are The Best Debt Elimination Programs?

Debt in the tens of thousands of dollars is unfortunately becoming reality for many people. If you find yourself in this situation, it can feel like you are carrying around a piano on your back. Want to get rid of all that debt? Check into one of the many debt elimination programs available. Depending on your circumstances, there is one just right for you!

Debt rollup strategy

With a debt rollup strategy, you simply pay off the smallest balance card first, while paying minimums on the other cards. Add a lump sum each month to the minimum on the lowest card. When it's paid off, apply that payment to the next lower card in addition to its minimum. Keep going like this until all cards are paid off. Then you can apply the total you have been paying on each card to your mortgage. If you can stick with this, you can be debt free in an average of ten years.

Debt Counseling

With debt counseling, you work with a third party and your creditors to work out a payment plan to repay the entire amount of your debt. Usually it is worked so that the interest and fees are waived. This is still very difficult to do.

Debt settlement

In debt settlement, you go delinquent on your debts, and wait for the letters and phone calls to start. After about 90 days, your creditors will start to make offers for settlements. Some as low as 20%. You may want to get outside help to deal with the harassment, and get lower percentages.

Bankruptcy

The last option. Here you either wipe all your debt clean, (chapter 7), or set up a payment plan that will work for you (chapter 13). Doable by yourself, but recommended that you hire an attorney.

Don't let a mountain of debt ruin your life. There are many different debt elimination programs available to people that may be down on their luck.