Do It Yourself

Consumer Credit Counseling

Debt Resolution

Bankruptcy

Embark On A Debt Consolidation Program

Get out of debt option #1: DO IT YOURSELF

While we would love to provide a loan that consolidates your debt for you, as a company of integrity, we want you to know that it is possible (although difficult) to do this on your own. All you need is a high degree of both discipline and drive. Sometimes we may get carried away with desires like the newest gadget or car, but if you want to get out of debt, things need to change. The first step is to stop adding more money on top of your debt; sit down with a partner and commit to only spending money on necessities. You can do this by keeping track of how much money goes out each week.

Creating a Weekly Budget:

Creating a budget is easy, but sticking to it is hard. There are some key steps you can take to make sure you stay on track, as well as what to do should an emergency arise.

When traveling from Los Angeles to Nashville, most people invest in a map or a sat nav system ahead of time. This is an excellent precaution and an investment in one's safety. The problem with debt is that it creeps up on us without warning and in most cases, it arises from poor financial habits carried out over many years. The first thing you need to do is break those bad habits and get a clear understanding of your financial situation. Start by creating a spreadsheet that will be your financial roadmap.

 It might be overwhelming for the moment, but we're here to help. You needed a clear understanding of the situation before you can tackle it.

If you aren't making enough monthly payments to cover your debt, the next step is to call your creditors and share the specifics of your financial situation. Don't start this process until you have all of the facts and figures at hand. To demonstrate that you are taking the issue seriously, be prepared to show documented proof of everything you're telling them. 

Often, if creditors can see how dire your situation is, they may offer a few options to help you with your problem. Most creditors don't want to lose any more money than necessary, so it's often easier for them to work with current customers instead of selling their debts at a discounted rate to another company. There are four basic choices that creditors will consider when discussing the best way out:

This may be the first time you've been able to look at
your financial health from every angle.

Interest Rate Reduction

Switch to a Repayment Loan

Interest rates can dramatically reduce the amount of debt you are held under, especially if you're paying over 15%. Companies often offer to lower the rate of interest. In many cases, this will get you interest rates around 12%, which not only saves you money in the long run but will also help to reduce your monthly payments.

One of the many downsides to a credit card is that it can be easy to overspend. Speaking with your credit card company may help you get the debt converted into a repayment plan. This would mean that the card is no longer valid, and you agree to set repayments over an agreed period of time. Once those payments are completed, then the debt would be wiped away, which will help you become debt-free.

Payment Break

Debt Resolution

Sometimes you need to take a break, breathe and think. When we're constantly worrying about paying bills, it can be difficult to make the best choices for our future, so a payment holiday could be just what we need to be able to recover and put things in perspective.

1. This is an option for negotiating the debt you can repay. In many cases it will be less than the total debt, but when done successfully, it can help you clear your debts quickly.
   
   
2. Trying to deal with this on your own might seem like the right answer because you've never had any experience with credit cards or banking. At CountryWide Funding Group, these are our areas of expertise. We understand how these companies operate, which puts us and consequently, our clients in a much stronger position. Although we won't try to talk you out of handling these issues on your own, we know that you'll get a better result if you work with our team.

DIY OPTIONS TO HELP WITH CREDITORS

GET OUT OF DEBT OPTION #2:
CREDIT COUNSELING

Is the thought go dealing with your creditors causing you anxiety?

If so, you might want to consider self-referring yourself to a consumer credit counseling service. These organizations offer up to 60 minutes of free counseling and can help you evaluate your debt situation. Once you've found a company that meets your needs, make sure to do your homework and check reviews before deciding on one. During your consultation, the counselor will decide on the severity of your financial situation and provide suggestions accordingly.

The traditional debt management option will help you structure a formal agreement with your creditors, who will agree to lower monthly payments on your behalf. Your debt type, lender and repayment options can vary from person to person. This agreement is only valid if the majority of your creditors agree to it. As they are not emotionally involved, and understand how the industry works, they are more likely than an individual counselor to reach an agreement with your creditors. But remember that part of this process is making hard decisions and sacrifices in order to free yourself from debt, which may include cutting out certain financial luxuries or services

Credit counseling agreements may take a minimum of five years to complete. In addition, you'll need to cancel all your credit cards and commit not to apply for any new credit until the plan is done. Although this might sound like a harsh requirement, remember that the purpose of the plan is to get you out of debt and discourage you from accumulating it again. It is critical that you maintain the desire and determination so that your commitment pays off in the future.

Many people report that being debt-free makes a huge difference in their lives. When you're faced with an overwhelming amount of stress and worry for many years, it can be easy to feel defeated or overwhelmed. With the DMP, there's relief in knowing that you'll be free from any payments for the life of your plan. There are also many benefits such as having most of penalties canceled or waived, and not having to protest your creditors. The DMP is a great way to finally start living your best life.

Get out of debt Option #3 - Debt Consolidation

A debt consolidation program can save you time and money.

Debts are more than just a hassle – they can be downright terrifying. According to many experts, the best way to deal with them is to consolidate them into one account. This will simplify your life considerably because you'll only have one payment per month and a chance of eliminating your high-interest debts. What's more, consolidating them frees up time, reduces stress, and stops debt collectors from bothering you. It also gets rid of phone calls from threatening collection agencies and the fear that accompanies managing multiple debts. This is what we at CountryWide Financial Group specialize in. If you would like to learn more about this option, please request a call here.

All strategies have a downside. One of the downsides to this strategy is that by consolidating your credit, you could end up back where you were unless you close the previously paide off credit accounts. Sometimes, when people attempt this method of consolidating their credit card balances, they end up keeping their cards open and paying for things with what's now extra money from reduced monthly payments. Within a few months, however, their original credit card balances went back up because they did not change their behavior, close the cards or have the discipline to stop spending. Debt consolidation is a great tool when used appropriately. Our team can help you determine if this solution is right for you.

Making bad decisions or getting into a bad situation is tough, but there's a reason you are where you are and that's primarily because of your bad habits. If you want to get back on track and pay off your debts quickly, we highly recommend you really change your habits and stopped impulse buys so that a consolidation loan option can work for you. 

Some people use a HELOC or “Home Owner Line of Credit” to consolidate their debt. When it comes to a HELOC, your home is actually being used as collateral against this debt. This means that if you were unable to make your repayments, there would be a risk of losing your home. In our opinion, its extremely important to consult with a professional lender to learn about all your options to choose the one that is best for your situation. Request a call or Apply Online to learn more about debt consolidation programs with CountryWide Funding Group.

It can be challenging to understand what debt settlement is and how exactly it works. At the end of the day, it will take work, hundreds of phone calls, and hours, but in some extreme cases, it's worth all the effort. In summary, your goal is to negotiate with creditors for a lower interest rate or reduce the total amount you owe on your current payments. Once you are debt-free from paying off a lower balance, you'll stop paying interest that would have kept you perpetually in debt.

Get out of debt Option #4 - Debt Resolution

Why would your creditors agree to debt resolution?

Sometime they don’t. But when they do, the primary reason is that your creditors won't want to accept anything less than they're owed. However, if a big life event has occurred like an unexpected but horrific medical condition or being laid off from work, your creditors may feel it's better to get as much money from you as possible rather than getting nothing at all. For this, understanding the system and determination are essential. Be prepared to phone your creditors daily and offer them a payment that you can afford in full and final payment. Never send your creditors any money unless you have written confirmation from them that the payment is final. Once you've paid the company back, store all of the agreements including the final agreement securely so if there were to be any dispute in the future, you have written proof from the company that the debt was paid.

If this sounds like too much to handle, and you aren't sure if you'll be able to provide all of the information a credit company will need, consulting with our team may be in your best interest. They'll work hard on your behalf to review possible solutions with you to help you choose the best path.

Although bankruptcy is a more drastic option, debt settlement could be your desired outcome. However, bear in mind that any debt settlement program will severely impact your credit score. Working with a debt consolidation loan may be a better option if you want to preserve your credit history and avoid remarks and point losses that could last for years.

get out of debt options #5 - BANKRUPTY

Bankruptcy is a scary word for most people, but in certain situations, it may be the best option. If you can't afford to meet your financial commitments month-to-month and there's no hope of change in the near future, bankruptcy may be the next step. This option is also available if you're stuck with debt from a business that has gone bankrupt. Remember that when you file for bankruptcy, it will have a significant impact on your credit score for many years to come. It takes about three years before you can qualify for any credit and the interest rates are much higher than those of your fellow citizens. Your car insurance will increase as well as some rental opportunities, and some employers may not hire you because of your bankruptcy history. The bankruptcy will stay on your credit report for 10 years, and some agencies have access to records at banks until they close down. You should note that while 10% of employers perform checks on credit before offering a position, this also polarizes your chances of finding employment somewhere else as businesses often won't want to deal with an applicant who has declared bankruptcy already or has filed previously.

Each type of bankruptcy has a different set of rules, deadlines and procedures. It's important to understand the differences between Chapter 7 and Chapter 11, because they affect how quickly you'll regain control over your financial life.

Depending on your situation, you may qualify for either Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 bankruptcy is the scorched earth approach, and helps to liquidate any and all of your current assets. Usually, the goal of a Chapter 7 bankruptcy is to repay your creditors. In order for this to work, you may need to sell your home and other items like vehicles. It can be very severe and does have serious implications.

A Chapter 13 bankruptcy might not be the best option for you because it's still a stressful situation, but there are ways to see this process through without completely liquidating your assets. This type of bankruptcy is called a reorganization bankruptcy because the goal is to find a way to re-organize your finances so that you can start making plans to repay some of your creditors.

Conclusion:

To preserve your credit score and simplify your finances into one manageable monthly payment, a debt consolidation loan is a great option. While a preferred option, consolidation is not the only way. In this article we discussed four other ways for getting out of debt: DIY, Debt Resolution, Bankruptcy, and Credit Counseling. If you’re ready to simplify your finances without having a huge negative effect on your credit, request call from one of our debt consolidation specialists today.