Even though debt doesn’t have to be a part of people’s lives in modern society, it certainly seems as though it does.  Credit cards, department store cards, credit lines and personal loans have all landed a whole lot of people in a whole lot of debt.  In may cases, people take on more debt to pay previous debt and end up walking a very fine line before it all comes crashing down around them.  One of the unpleasant things about debt is that it can creep up on you until you are completely enveloped.  Before you know it, you can be past the point of no return and staring down the possibility of bankruptcy if you don’t do something about it.  

If you really have too much debt and there really is no way for you to climb out, bankruptcy is an option.  It isn’t an option that anyone wants to consider, but in some cases it’s just the only way out of trouble.  Bankruptcy will affect your credit in the future and you may lose some of your possessions, but you’ll also be absolved of all your unsecured debt.  You’ll also be able to get a completely fresh start and work toward never letting it happen again.  

Of course, bankruptcy is a last resort and there are other options if you find that you have too much debt.  It is usually the strain of the monthly payments and the strain of the phone calls from creditors that really pull people down.  One way to reduce both of them is to try and get a debt consolidation loan to pay off all of the outstanding debts.  Debt consolidation means that you are consolidating all of your debts and amounts owing into one amount.  This means that the old debts are paid off, which gets the creditors off your back, and you only have one monthly payment instead of several.  The one payment you’ll make from a debt consolidation loan is typically quite a bit less than the total of all the other debts you were carrying.

 

You can also try for a different debt settlement option such as a consumer proposal or similar agreement.  In this scenario, you still have to pay off your creditors, but you only pay them a percentage of the total debt that you owe.  By offering you this kind of deal, they will prevent you from filing form bankruptcy, where they wouldn’t get any of their money back.  

Whatever kind of solution you choose, be diligent and disciplined as you carry it out.  You might not get too many opportunities to fix the problem, and if you really want to avoid bankruptcy you will have to stick to the program you choose.  Debt consolidation and other repayment plans can all work, as long as you make the effort.  Once you get yourself organized, remember to keep that same level of discipline going so you don’t end up getting into the same situation again.