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With the economy as it is, peoples savings are being drained and more people are turning to credit and debt just to pay for the daily costs of life.
Instead of being able to use credit the way it is meant, for large purchases such as a house or a car, many are having to use it just to make ends meet, and this is a surefire recipe for disaster.
Instead of heading head first into debt and credit problems, you can try some alternatives first.
Consolidate debts.
The simple way to do this is to hire a company to consolidate all your debts into one payment, instead of multiple payments.
The benefit in this, is that often the interest rate you are offered by the debt consolidation company is lower than those of the original debts.
Plus, they are often able to work with your creditors to reduce your overall debt level, which can make a big difference right from the get go.
Speak to your creditors.
With more and more accounts in default many creditors are that much more willing to work with those customers who are at least attempting to make their payments.
If you call and explain your situation, they may be able to work with you to reduce the amount of your monthly payment, or be able to extend you a payment or two without causing you to be in default.
Not sure you can contact them on your own? Get legal advice.
Locate for yourself someone who specializes in credit and debt issues, and they may be able to assist you in lowering your outstanding debt, and getting reduced rates for outstanding amounts.
Lawyers that specialize in these issues know the ins and outs of the laws surrounding debt and credit, and therefore can help you out more than a normal lawyer.
Be sure you do your research on lawyers before taking one on to help with your credit and debt issues.
Nothing else working? If your situation is particularly bad, you can also consider bankruptcy.
This of course is not a route to be undertaken lightly as it can affect your credit score for the better part of a decade.
If you believe your only option is bankruptcy, seek yourself a bankruptcy lawyer who can help you understand the severity of this option, and make certain it is the option for you.
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