Are there debt relief solutions that can get you out of debt in as little as a year ?..the answer is yes. Speedy debt relief is possible. With the right methods and determination, debt no matter how large it is can be reduced significantly…even paid off completely over a short period of time.
The story of Mrs Nadders of frugalvillage.com is a case in point. Mrs Nadders was able to pay off $31,000 worth of debt in one year using entirely frugal methods.
But what she simply did was reduce her expenses significantly, place herself and her family on a strict budget, sell off some of her family’s assets and then used the proceeds to pay off her debts using the debt snowball method.
And a lot of other debtors have done the same …with very similar results.
A couple Gina and Josh Masters of becomingminimalist.com made 33 cuts to their expenses and then used the proceeds to pay off $66,000 of their debts using the debt snowball method.
Ms Carlesa Washington of Washingtonpost.com did something similar…she made cuts to her expenses, placed herself on a budget and went on to pay off the entire $6,850 of credit card debt that she owed within a year.
So it is entirely possible to eliminate a large amount of debt in a short period of time with the right methods..
Are you seeing a pattern here?.
Reduce your expenses, place yourself on a strict budget, sell off some of your assets, employ a debt relief method and you can get out of debt very quickly.
That appears to be the effective formula for rapid debt reduction .
Spending cuts, asset liquidation, new income creation, the use of a budget and an effective strategy for paying off your debts.
So if you are looking for a quick way to pay your debts that is what you need to do.
Free up as much cash as possible and then look for an effective way to reduce your debts.
Spending cuts, asset liquidation and new income creation gives you the funds with which to pay your debts.
Using a budget gives you financial control and an effective debt relief method gives you an effective way to use the funds you have generated to eliminate your debts.
That’s why this combination of solutions almost always leads to rapid debt relief…it gives you money, control and an effective debt relief solution.
All the ingredients you need to get out of debt quickly.
The key to success is to reduce all discretionary spending…everything from restaurant bills, to cable, phone bills, gas and vacation. Any expense that is not needed for your survival must be reduced.
Your savings or your 401k might need to be liquidated. You might need to borrow from your life insurance, sell your car or jewelry or bike or boat.
To create extra income you might need to rent out living space, sell your clutter, use your spouse’s salary, get a second job.
All these steps help free up money that you can use to reduce your debt…which is something you must do if you are looking to get out of debt quickly.
You can then employ various debt help methods to try and pay off your debts after that. I’ve already talked about the debt snowball which essentially involves starting with your smallest debt and then moving gradually upwards to the larger ones while you make minimum payments on the rest.
It is effective and helps you record quick victories against your debts.
But it’s not the only method you can use.
You can also use the debt avalanche which is essentially the opposite of the debt snowball…you start with the debt with the highest interest rate and then move downwards while making minimum payments on the rest.
It helps you pay off your debts quicker but it’s harder to do because you’d need a larger amount of money to start than is the case with the debt snowball.
You can also choose to do the debt tsunami where you target the most emotionally distressing debt while you make minimum payments on the rest.
You might even choose to just make more than the minimum required payments on all your debts if you have the funds or even go on a 30 day money cleanse as advocated by redbookmag.com.
But whatever method you choose. If you have raised enough money using the “austerity” measures described above you would succeed in paying off your debts no matter what method you use .
That’s how to make debt relief quick.
This formula almost always works for quick debt relief.
So always remember that to get out of debt quickly you would need to
1 Free up cash
2 Get financial control
3 Choose an effective method for paying your debts.
That is the formula for rapid debt relief.
The combination of those three steps almost always leads to rapid debt relief. But note that I said almost because that’s not always the case.
In some cases your debt may be too large or you may not have enough financial resources to mobilize towards paying off your debts.
If that’s your situation, to reduce your debts quickly you will need help.
And the best way to get it might be to try to settle your debts. Debt settlement when done right gets you out of debt quickly…within 6-18 months…rarely in more than 2 years.
But the caveat here is that you must get involved with the right people. That is the most important determinant of success with debt settlement.
And there are two kinds of debt settlement too. The long term “savings” kind that takes longer and fails 90% of the time…and the short term “liquidation” kind that takes a lot shorter-rarely above 6 months and succeeds 94% of the time.
The savings method as the name implies requires that you save money in a bank account over a long period of time…sometimes for years in order to raise the lump sum required for the settlement and it has a high failure rate for a lot of reasons…the least of which is that most people in debt simply do not have the means to save money for too long.
The liquidation method is however more effective because you simply raise money using the methods described above and then try to settle your debts directly with your creditor or through the services of a company that understands this method of debt settlement.
The liquidation method of debt settlement is the only kind of debt settlement you should be looking to do because it is far quicker and a lot more successful.
It is a surer way to succeed with debt settlement.
If you however cannot pay back any of your debts at all, or if debt settlement fails you should consider filing for bankruptcy.
There is no shame in that.
It is not necessarily a bad thing.
If you can’t pay off your debts in any other way you should definitely consider filing for bankruptcy. But you want to make sure you get chapter 7 because it would get you out of debt faster…in as little as 6 months and cause all your debts to be discharged.
Chapter 13 on the other hand is essentially a debt repayment plan and takes up to 5 years to complete. So you want to avoid it as much as possible.
If it is the only kind of bankruptcy that you are likely to qualify for…you are better off settling your debts.
Anyway those are the options available to you if you are looking for rapid debt relief solutions.
1 Frugal-spending cuts and new income creation
2 Debt Settlement
3 Chapter 7 bankruptcy
I hope you found the information useful.
Please help me know if you did.
I would really love to hear from you.
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