The real truth is that if you were to continue making your minimum required payment each month on your debt and was, diligent not to borrow any more money adding to your debt; it would likely take more than 30 years to pay off your current debt. You would end up spending thousands more than your original balance and less than 20% of the money you paid will have actually gone toward the principal balance, the rest having gone to pay interest and fees. This may not be the best way to eliminate debt.
The worst part is that this is not the typical scenario. You have most likely added more debt as you went along, so the truth is this - Without an aggressive systematic plan to eliminate debt once and for all, you will NEVER rid yourself of the problem!
There are several otions to choose from if you have a sincere desire to eliminate debt.
- Debt Negotiation
One of the best options that many people fail to consider is good old fashion negotiation. You don't mind haggling when you buy your new car or other major purchase. It may come as a surprise to you, but you can to the same thing with your finances. Try it, wouldn't it be great if you could turn that $15000 dollar credit card balance into $12000 with nothing more than a few phone calls or letters. You can negotiate!. This along with a solid systematic plan to better manage your finances will get you on the road to a more rewarding future. Don't wait another minute. Take action right now. You can eliminate debt with savings up to 70% or more.
- Many people choose to use a debt consolidation loan.
This is not a solution to your problem but may be a valuable tool you can use to get the problem under control. Choose carefully, many people who use a debt consolidation loan feel a little breathing room and are soon out accumulating more debt.
- Some people choose credit counseling.
This may work for some but is usually not the most effective way to eliminate debt. Most experts agree that credit counseling only works about 15% of the time. The reason is, even though the counseling service you choose is considered a non-profit organization someone must be paying them. You will probably be required to pay them an administrative fee and the lender they have negotiated with will pay them a percentage of the debt. If the lender decides not to cooperate, how hard do you expect that the credit counseling service will work for you?
- Others choose the ultimate "train wreck" for themselves.
Bankruptcy may be the grand finale after a long series of mistakes. For some people this may be the only option. If your debt burden is simply too large to possibly overcome you may have no choice. The problem is that most bankruptcies are simply not necessary. Many people are forced into bankruptcy by overly aggressive lenders. Some are talked into it by friends and family or worse yet by their attorney. While bankruptcy may not be the end of the world you should carefully consider your bankruptcy alternatives.