Debt is hardly the first thing a family needs. These days, finances are becoming more and more of a worry for American families. Debt is alarmingly common these days. While there are some good aspects of debt, and it doesn’t always mean that the economy in danger, it’s still rather alarming to know that as many as 80% of American adults are in debt. Imagine what those statistics are going to look like after a few more years’ worth of college students enter the “real world” with all that student debt!
If you’re in debt, things may not be as bad as they appear right now. There are a lot of ways in which debt can be made a lot less overwhelming - and, if you’ve got a family to look out for, this is incredibly important. Assuming that bankruptcy isn’t an option for you, we’re going to take a quick look at some of the ways in which you can ease the stress that debt can place on your family.
Get advice from the experts
A financial advisor doesn’t usually seem like a smart option to a lot of people. After all, financial advisors aren’t exactly free - and, at that, they’re not exactly cheap! Still, there’s no doubt that the right financial advisor can give you some brilliant advice that makes everything much easier to handle.
Because you have quite a few options when it comes to easing your debt, it’s important that you figure out which one will work best for your family. A financial advisor has the smarts and the tools to properly assess your situation and figure out how you can emerge from this process in good financial health.
Look into consolidation
One of the leading reasons that debt often becomes so overwhelming for people isn’t necessarily the sheer size of the amount owed. It’s the amount of institutions that one person can owe money to!
Debt consolidation is a process that has helped a lot of families in these sorts of situations. To put it briefly, debt consolidation does what it says on the tin - it brings all your disparate debts together into one debt that you then owe to a single company.There are fees, of course, but it can make everything much easier to deal with. Sometimes, it can even work out cheaper in the long run. Read more about debt consolidation over at LendingTree.
Although debt settlement sounds relatively easy, it’s not a path that a lot of families want to go down. It doesn’t exactly leave you without a hit to your credit score. Still, it’s an option that is often overlooked, despite how much it can help families in debt.
When you settle a debt, you’re essentially formally announcing to the lending company that you’re unable to pay the full amount back to them. You’ll then negotiate with a representative of that company. (This is where a professional financial expert can come in very handy!) You’ll agree to new terms of payment, as well as a new payment amount. A lot of families don’t consider settlement precisely because of this negotiation part - they assume that creditors aren’t going to be very kind about things. But you may be surprised at how understanding people in this industry can be.