Get Out of Debt: 3 Debt Relief Programs

This is a guest post by Sarah Waters. You can also write a guest post about getting out of debt.

According to the United States Department of Treasury, as of January 9, 2012, the gross debt in the country was $15.23 trillion. Of this, $10.48 trillion was held by the public. Looking at the alarming levels of public debt as well as the losses that lenders were facing, a number of government-aided debt relief programs and debt settlement schemes by financial institutions were introduced. These programs offer legible ways in which you can get out of debt.

How to Get Out of Debt

Following these debt relief programs religiously can help you get out of debt and get rid of that extra burden that has been disturbing you both emotionally and financially for so long.

• Debt Consolidation Program: If you have outstanding payments on your credit cards and are tired of paying late fees for exceeding credit limits, this is the apt program for you. A debt consolidation company helps reduce interest rates and eliminate late fees by merging all your credit card outstanding payments into one, providing you with terms that are easy to abide by.
• Debt Management Program: Reputed financial institutions and lenders have introduced debt management programs that provide you with the knowledge of managing debt effectively. These programs help you keep a track of your expenses and to control your needs to manage and consequently reduce your debt.
• IVA: the Individual Voluntary Agreement scheme helps you get out of debt quickly. It's a government scheme in which a practitioner acts as the mediator between you and your creditor and reduces your debt to an amount that you can pay off easily. To be eligible for an IVA, your debt should be more than $10,000.

Bankrupcy is Not Really an Option

Most people think of bankruptcy as the only option that can help them get out of debt. Filing for bankruptcy not only destroys your credit history, it also eliminates your chances of getting loans in the future. Debt relief programs are a far better alternative than filing for bankruptcy as your credit history does not take a beating and keeps financial support possibilities open for you.

Sarah Waters lives in Los Angeles and blogs about financial news, consumer tips, and small business ideas. Her blog posts appear regularly on the Smart Money Blog and the Sacramento Car Title Loans website.

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