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Debt Solutions Should Tackle Today's Bills and Tomorrow's Goals

Take a moment to congratulate yourself - American consumers are finally beginning to win the war against debt. Thanks in no small part to the economic collapse of 2008 and the subsequent recession, we're paying more attention to our spending, we're looking for debt solutions to pay off more of our bills, and we're borrowing less. But despite this hopeful news, we still have an uphill battle when it comes to becoming completely debt- free and ultimately changing our spending behavior. Many consumers are still seeking debt solutions to help them get on track financially; maybe you're one of them.

Although we're spending less and paying off more debt than in previous years, it's our overspending that got us into financial trouble in the first place. And it's not so easy to get out, especially without help from a debt solution company or a financial advisor.

Often it's high credit card balances with astronomical interest charges and fees that lead consumers to seek debt solutions. It's not uncommon for a cardholder to carry a balance of more than $10,000. So without a debt solution plan, it can take years - or even decades - to pay off that amount, plus the thousands of dollars in interest and finance charges that are sure to accompany it.

Consider Your Individual Financial Needs

Fortunately, there are many options when it comes to finding a debt solution or a debt solution company that considers your individual financial situation today, as well as your goals for the future. Before researching plans and potential companies to help you manage your debt, consider the following:

  • Your current level of debt. Is it a small, manageable amount (less than $5,000)? Or does your amount of debt feel more overwhelming and too much to tackle on your own?
  • The amount you're able to pay to your creditors each month. How much do you currently pay to each of your creditors? Do you ever miss payments because you can't afford it? Would you like a debt solution that allows you to pay a little less each month?
  • How quickly you'd like/expect to pay off your bills. Remember that getting out of serious debt isn't quick or easy. But with the right debt solution, it's very doable. A debt relief company can work with you to determine a reasonable payoff date, considering your existing debt and your goals.
  • Whether you'd like to go it alone or partner with a debt relief company. Read reviews and get recommendations from friends, family or other consumers about their experiences with debt relief companies. It may help you see the benefits of partnering with one to conquer your debt. Start by visiting CareOne's community forum and reading what others have to say.
  • What kind of help and support you'd like along the way. A good debt relief company will offer you financial education and tools to help you get and stay debt-free. When researching companies, ask them what services they offer in addition to debt solutions.
  • Your future financial goals. Do you want to buy a home? Plan for your children's education? Save for retirement? Your future financial goals are just as important as getting out of debt. Determine what you need in order to feel that your debt solution will point you toward a successful financial future.

As you can see, your specific financial situation plays a big role in the type of debt resolution that may work best for you. Since there's no one-size-fits-all plan or approach for managing your debt, be sure to consider all your options and be honest with yourself about your goals.

Learn About Popular Debt Solutions

You can find a lot of information online about the most popular debt solutions. They're popular because a lot of consumers like you have found success with them! Visit the CareOne website to learn more about some of the following plans, or ask a question at our online Help Center. Here are some solutions that may suit your debt relief needs:

  1. Pay down debt yourself. Many consumers choose to "go it alone" when it comes to paying off their debts, either because they assume it will be easy, or they're uncomfortable talking to someone about their financial situation. If you don't have a lot of debt, paying it off yourself may be a good option. Realize that you'll need to create a monthly budget, complete with information on all your creditors and the payment amounts you'll make to each. What's most important is that you stick to that budget.
  2. Consider a debt consolidation loan. With this type of debt solution, you'll work with a lender to pay off your existing debts. In exchange, you'll take out a loan with the new lender; meaning you'll make just one payment to them every month, rather than continue to make payments to your existing creditors. The problem with many bill consolidation loans is that you could end up paying more over the life of the loan than if you had paid your creditors directly. Be sure to do your homework on this debt solution option and see if it works for your financial situation. Learn more about debt consolidation loans
  3. Get a debt management plan. A debt management plan, such as that offered by CareOne, may help you pay off your unsecured debts in five years or less. By consolidating your debts into one simple monthly payment, a DMP may offer significant savings in both interest and repayment terms. Read more about this debt solution >>
  4. Settle your debts. With a debt settlement plan, you'll partner with a debt relief company such as CareOne Services, Inc. that will work with you and your creditors to negotiate to pay back a portion of your unsecured debt. With debt settlement, you'll make affordable monthly deposits into a trust account. This type of debt solution will have a negative impact on your credit but will help you avoid filing bankruptcy, so it's important to discuss this, and all options, with a qualified representative. Read more >>

If you liked this you may also like:

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    Regardless of whether you binge on shopping or simply use credit cards to make ends meet, there may come a time when you need a financial intervention to help organize your bills, repay your debt, and improve your finances. For some, debt consolidation is the answer. But before you jump in head first, it's time for a course in Debt Consolidation 101.

  • Understanding Your Debt-To-Income Ratio

    Your Debt-to-Income Ratio is a crucial personal financial health indicator. Find out how to calculate it and what it means to you.

  • Debt Relief: Myth & Reality

    Debt relief comes in many forms- credit counseling, debt consolidation loans, settlement and even bankruptcy. Each solution will help you get out of debt, but the long term impacts and fees can vary greatly. Understand the myth and reality behind your debt relief options.

  • Is Debt Consolidation A Good Idea?

    If you have lots of debt, consolidation may save you time and money. Depending on your financial situation, there may be a solution that's right for you.

  • Do You Need Debt Relief?

    Feeling overwhelmed by your debts? Having trouble making ends meet? Unable to get ahead of your credit card debts? A Debt Relief plan may be your solution to getting control of your finances.

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