Alternative Debt Management Solutions
1. Cut deals with creditors
Creditors can you help you manage your debts by lowering monthly payments on a temporary or permanent basis, reducing the interest rates on debts, or letting you make interest-only payments for a limited period of time. DebtBusters will liaise with your creditors for you.
2. Create a list of all debts and the relevant information pertaining to each debt
3. Review your budget
Figure out how much you can afford to pay on your debts every month, starting with debts that are the most important. Don’t allow a creditor to pressure you into agreeing to pay more than you think you can afford. Whenever you talk with a creditor, explain why you’re calling and exactly what you’re asking for. If the first person you speak with says no to your request, politely end the conversation and ask to speak with a manager or supervisor
4. Borrow money to pay off debt (Debt Consolidation)
Consolidating debt is a debt solution consisting of attaining new debt in order to pay off existing debt. Going into debt to get out of debt may not sound sensible, but if conducted correctly, it can be smart debt-management strategy. The following should apply when you consolidate:
- The interest rate on the new debt is lower than the rates on the debts you pay off
- The monthly amount of the new debt is lower than the combined monthly total for all the debts you consolidate
- The new debt has fixed interest rate
- You commit to not using credit again until you’ve paid off the new debt
5. Get help from credit counselling agency, DebtBusters
The advice and assistance of a credit counselling agency, such as DebtBusters, will be a lifesaver when in a large amount of debt and struggling to take control of it. DebtBusters can help you:
- Resolve any confusion with regards to debt problems
- Gain back your financial wellbeing
- Set up a household budget
- Evaluate an existing budget and suggest changes to help you get out of debt faster, avoid the loss of assets, etc.
- Negotiate lower payments with creditors
- Arrange a suitable debt management plan
- Improve your money management skills
6. File For Sequestration
Sequestration is a good debt management solution to implement when your debt is too great, relative to your monthly income. DebtBusters can help you file for sequestration, especially if you’re concerned that a creditor is about to take away an asset you don’t want to lose.
Read more on Sequestration