Helpful Alternatives To Debt Settlement

Ok, so I spend a lot of time talking about debt settlement on this site. Because that's the path I chose in order to get my debt under control. But I know it's not for everyone. Even some people who really need it (but because it is relatively unknown and aggressive some people shy away, I understand).

If settlement is not the answer for you, for whatever reason, then what? Here are some alternatives to debt settlement you should consider:

• Calling your creditors directly and asking for them to lower your interest rates:
  In the past, this option usually worked well. These days, it's not as easy to get your creditors to lower your interest rate, but if successful it can have a big impact. Lowering your rate even one or two percentage points can mean big savings. If you call and get no help, ask to speak with a supervisor. Sadly, the creditors don't always offer help even though it would seem to be in their best interests to keep you as a customer.

• Credit counseling/debt consolidation:
  If calling on your own doesn't work, this is a good option. The credit counseling companies usually have agreements with the banks to lower your interest rates. So more money will go toward paying down the principal. And you'll get out of debt quicker than you would paying the standard high interest rates.

• Refinancing your mortgage:
  Call your current lender first to find out your options. While interest-only loans are not in your best interest long-term, it may give you some relief, lower your payments, and give you some breathing room. And if you have a very high interest rate, you may be able to get a lower fixed rate. Sure, you must pay closing costs. But in the long run, unless you refinance constantly, getting into the best possible mortgage will help you financially a great deal.

• Refinancing your car loans, student loans, etc:
  It never hurts to call and ask if your current lenders have a better program for you. If not, go online and compare a few new lenders. It's a pain, but can save you some money. With federal student loans, there are strict re-financing guidelines. For other loans, it should be easier. And while you are doing the work, remember that every little bit helps.

• Trading expensive "stuff" for less expensive stuff:
  Currently I drive a 1996 Honda Civic with over 225,000 miles on it. Not prestigious, but it gets good mileage, and runs great. And it's paid off, so there are no payments! What do you own that you could sell and make some money? Or downsize to a cheaper version or plan?

• Read through your checkbook or bank statements for the past few months and see if you can eliminate any expenses:
  Several years ago my wife and I lived in a rural area without cable TV. It was hard not watching all the popular shows and sports, but it was lots of fun listening to games on the radio. It saved us a bunch of money. And we survived. You may not need to give up TV, but you'll probably find a few ways to cut your expenses.

• If all else fails, consider bankruptcy:
  If your debt is real bad, it won't hurt to at least talk to a bankruptcy lawyer to learn all your options. It may be a good option for you. Or you might dislike it so much that it motivates you to find other solutions. In any case, being informed is a good thing. And will help you find the right path for you.

Hopefully some of these suggestions will help. Or at least get you thinking of more ways to beat your debt. And no matter how difficult it gets, remember to spend some time doing fun things - and looking at the good things in life. Trust me, I know what it's like to struggle, and feel like there's no hope. But the journey of getting out of debt teaches you a lot about how strong you really are!

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