Fast Debt Relief Options - Think Again

If get-rich-quick schemes worked no one would have debt issues. This also applies to Get Out of Debt schemes. People often find themselves even deeper in debt after attempting to follow any of the risky strategies described here. These rarely work out and rather than helping, can worsen problems and make it even tougher to dig yourself out of debt.

If you’re considering taking on more debt to alleviate existing or past-due debt – or trying more drastic measures – this is not recommended! Here are some not recommended debt relief alternatives you should avoid:

• Home Equity Loan – If you had a small roadblock such as a stint of unemployment or an accident or illness that kept you out of work and are now back on track, this could be workable. However, if you are struggling with consumer debt, such as credit cards and car loans you need to avoid using your home’s equity to pay these off, because whatever is causing you to get behind on your debt payments will also prevent you from keeping up with payments on your home equity debt.
• Payday Loans – Payday and title loans are the worst sort of debt to consider. With interest rates of more than 500%, it’s unlikely that you will be able to keep up with payments on this type of rapidly escalating debt. If you are behind on payments for credit cards or your car, taking out a payday loan will only put you deeper in the hole.
  Debt Settlement Firm – You hear the commercials – “We will settle all your debts for pennies on the dollar” – They promise to, for a large fee, negotiate lower payoffs from your creditors. It sounds great, but you know what they say about things that sound too good to be true. If by a small chance they are successful, the creditor will send you a 1099 as you will likely be required to declare the amount negotiated as income and pay tax.
• Credit Card Cash Advances – Cash advances are typically charged at a much higher rate of interest than purchases. It can be as much as 10% higher than your standard rate and if you are already dealing with sub-prime interest of near 20%, this can result in a shockingly high-interest rate. You may also be hit with a 3% “transaction” fee which will drive the amount owed even higher.

Getting yourself in deeper debt to pay off existing debt is not wise and will catch up with you sooner rather than later. If your credit cards are tapped out, or you have late payments, your credit score will drop again. Incurring debt for debt is not a solution and can impact your finances terribly.

Proven and Legal Debt Relief

Outside of not taking on debt in the first place, there is only one proven and effective way to end your debt and that is with bankruptcy. If you have found yourself even deeper in debt by attempting to get of debt quickly, as one of the largest bankruptcy law firms in Alabama and Mississippi, the attorneys at the Bond & Botes Law Offices have seen it all and are dedicated to helping clients resolve all their debt issues. Call our office today to speak to one of our skilled lawyers 1-877-581-3396 today or “email us”https://www.bondnbotes.com/contact-bond-botes-bankruptcy-law-firms from our site.