Action needs to be taken, as fighting your way towards a clean credit history is far much better then declaring yourself bankrupt. When choosing among debt consolidation alternatives, don’t really think on what you can gain, because those companies which advertise themselves as helping you save “thousands of dollars” are scam. Your goal should be to find a plan that allows you some flexibility and affordable monthly payments. A home equity loan is yet another alternative to consolidate your debts, although a little risky business but if you really believe in your powers, it may be a solution. The question is not only momentarily to solve the question of debt, but for good, and this requires a strong alternative.
It is not the best solution, but if you really don’t see a way out of it, you can reduce your living standards, meaning to sell a bigger house in favor of a smaller one, this way you could save some money which would pay for your debts. No one really wants to give up his/her standards, but if this can help better your situation, then it is for a good cause. It is still better then declaring yourself bankrupt, then not being able to pay, and the trustees to sell the roof above your head. Then there will be nothing left. Between two seemingly bad decisions you have to make, choose the least “painful”.
There are always alternatives to these financial problems; the question is which one to choose. Never take up an alternative whose principles are not clear to you, and most importantly don’t trust unknown, so called “phantom” organizations which promise you a profit, when in fact you are swimming in a sea of debts.
A rapidly increasing alternative nowadays is the IVA (Individual Voluntary Arrangement), where the good news is that almost all of your incomes are taken into consideration. Everything runs as a sort of arrangement between debtor and creditors, only everything is formal. In case you decide that the best option is to take action yourself, without the involvement of any organization, or company and you believe you have very good accountancy skills, then you can start by reducing unnecessary expenses: no more hazardous misuse of you credit cards is perhaps the most important area in focus; then spend less money on eating out and enjoy cooking yourself, thing which will significantly reduce your monthly expenditures. This way it will be easier to keep an eye on your monthly budget and you will notice a significant increase in income which you can spend on things that are really needed. You may say that by cutting off some of your little pleasures will leave you with nothing, but the truth is you can’t observe the difference until you really try it. Choose the best debt consolidation alternative that suits you and enjoy that much desired financial freedom!
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