Debt: there are ways out

Are you falling behind on your monthly payments? Do you constantly need to borrow money from loved ones to make ends meet? While you shouldn’t ignore the indicators that you’re pushing your limits with debt, there’s no need to feel your situation is hopeless. It’s possible to get your finances back in balance.

A credit counseling agency can offer personalized advice to help you manage your budget and restructure your finances. They’ll help you understand your options and guide you through the necessary steps. Here are some of the most common solutions.

• Debt consolidation consists of taking out a loan to pay off existing debts like credit cards and lines of credit at a more favorable interest rate. You repay this loan by making a single payment every month. Debt consolidation simplifies your monthly bills.

• Chapter 13 bankruptcy is a less punitive alternative to Chapter 11. This approach lets you keep your assets and pay off a portion of your debt per a schedule negotiated by the courts and a bankruptcy trustee. Once the repayment plan is complete, the remaining amount owed is discharged.

A financial health expert can help you learn how to use credit better, create a more manageable budget and regain control of your finances.