Getting Out of Debt – The Top 3 Ways to Legitimately Get Out of Debt

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Getting out of debt may seem insurmountable or even impossible if you are one of the many Americans who are living with a big black cloud of debt over your head. Billions of dollars in taxpayers' money was lent to large financial institutions to help them get out of debt or least balance their checkbooks. Well it's about time, but now government stimulus dollars are able to help consumers in getting out of debt as well. This article will outline the top 3 ways to get out of debt and also why this is a very unique and unpresented time in our economy.

The first way many people like to start when trying to get out of debt is to consider debt consolidation. Debt consolidation will allow you to take multiple lines of credit and combine them into a single loan and monthly payment. There is a fee for debt consolidation and consumers are still required to pay back the entire loan amount.

The second way that people get out of debt fast is to declare bankruptcy. Bankruptcy used to be very advantageous for consumers who wanted to eliminate debt and stop incurring interest on their loans. Bankruptcy laws used to be favorable for consumers but have recently increased laws that make bankruptcy a financial mess that consumers should avoid at all cost.

The last and most popular way for consumers to get out of debt is to hire a debt settlement company to negotiate with your creditors. Legitimate debt settlement companies will be able to negotiate a 50% debt elimination on your actual balance of unsecured debt. You must be at least $ 10,000 in debt to qualify for a debt settlement company. If you do qualify you can end up eliminating a significant amount of your debt with only minimally affecting your credit score.

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Source by Matthew Couch