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Millions of people deal with debt on an everyday basis. Falling into large amounts of debt is something that has become common in today’s society. Many people are burdened with mortgages, student loans, and credit card debt. For other people, unfortunate circumstances such as sudden unemployment or a medical emergency has caused them accumulate debt. High amounts of debt often cause people to live stressful lives as they constantly worry about their finances. Here are a few debt relief options that you can consider to help you manage your situation.

Debt Settlement

Debt settlement occurs when you or a company on your behalf negotiates a settlement with your creditors. The goal of debt settlement is to lower the principal of the debt, and eventually retire it. Make sure that you find a professional and successful company to represent you.

Debt Management

A debt management program can assist you with any unsecured debts, such as credit card bills, student loans, and medical bills. Your monthly payments will be reduced, as you will receive a break from late fees, interest rates, and penalties from creditors. You will be expected to pay the full amount over time.However, with an organized payment plan, you can stay on track with your payments and improve your credit score. A debt management program can also help you develop a monthly budget.

Debt Consolidation

Debt consolidation involves you receive a loan, which you can use to pay off all of your debts. Debt consolidation will help you reduce the interest rates and allow you to make one low payment each month.

Credit Counseling

You may choose to have a credit counseling agency review your budget and advise you on what your different alternatives are. Many credit counseling services provide help free of charge. The counselors are ready to assist you and help you find a solution.


If your debt has really become unsustainable, you can file a Chapter 7 bankruptcy, canceling your debts. You may also choose to file a Chapter 13 bankruptcy, which sets up a long repayment plan. Bankruptcy will ultimately help you start over in regards to your debt. Filing for bankruptcy can be a stressful process, as you will be dealing with court officials. Make sure that you understand all the legal terms related to your bankruptcy.

Budgeting Software

Using budgeting software can help you stay on top of your finances. The software helps you keep a log and subtract purchases from your overall income. The software comes with tools, calculators, and different alerts to help you keep track of your spending habits.

Renegotiating Bills

Renegotiating is especially helpful in regards to any credit card bills that you may have. Sometimes credit card companies will negotiate terms that will work for you. Changing your Annual Percentage Rate will help lower your monthly payment and make it more affordable.

Refinancing Your Mortgage

If you choose to refinance your home, you can pay off an existing mortgage and start a new one. This is a good option if you have a low mortgage rate according to the housing market. Be sure to do a lot of research on what your best available options are. If you can commit to spending the appropriate time doing research, you will not have to hire a professional to do the research for you, which saves you money. You will also learn important information about your home, finances, and the housing market.