Getting out of debt is a hard journey but if you know just how long it takes to get to the end, you feel more motivated. As you tick off the days, weeks and months, you get the feeling of getting closer to a debt free life.
While debt relief programs have varying lengths in terms of duration, most of them will get you out of debt in 5 years - at least if you follow through the program strictly. Apart from the type of program, you also have to consider the amount of debt that you owe. The bigger it is, the more time you have to spend paying it off.
Financial freedom is not an easy feat to accomplish but once you develop the right habits, it will be easy to maintain. You just have to remember that you need two things: the right attitude and the right debt relief program.
Any endeavour, no matter how difficult, can be achieved if you approach it the right way. If you have the determination, discipline and self control, you should be able to eliminate the habits that got you into debt. Simultaneously, you can also develop the right skills and habits to make sure that you will only go through this road once. Given that the road is not easy, you’d better make sure you stay out of debt for the rest of your life.
Finding the right debt relief program involves a careful analysis of your finances. You need to understand the types of debt that you have and your ability to make payments on your credit obligations.
Your efforts will be easier if you make a budget plan. This plan will identify your income and the various expenses that you spend on every month. Whatever is left after the basic necessities is called your disposable income. This is what you can allot for your debt payments.
If you have just enough to cover the minimum of your debts, you have the option to go through debt consolidation - either through a consolidation loan or debt management/credit counseling. The whole idea of these options is to help stretch your payment period to 5 years or less - depending on how much you can afford to pay every month. The goal of a longer term is to make your monthly payments smaller. That way, you still have enough to put into your savings.
On the other hand, if you cannot meet the minimum payments of your debt, your option is debt settlement. This type of debt relief will involve negotiating with your creditors so they only make you pay for the agreed settlement amount. This is usually lower than your current balance. Once you have paid that off, the rest of your debts will be forgiven. This usually takes 2-4 years to complete.
The fastest debt relief option is bankruptcy. If you qualify for Chapter 7, you may find yourself debt free in a few months. If you only qualify for Chapter 13, that could take a couple of years - but it is usually faster than debt settlement. Of course, you still have to work on your badly damaged credit score.
These different options will get you out of debt in 5 years or less. Consider your choices carefully. And make sure you learn the important lessons that will help you stay out of debt.
While debt relief programs have varying lengths in terms of duration, most of them will get you out of debt in 5 years - at least if you follow through the program strictly. Apart from the type of program, you also have to consider the amount of debt that you owe. The bigger it is, the more time you have to spend paying it off.
Financial freedom is not an easy feat to accomplish but once you develop the right habits, it will be easy to maintain. You just have to remember that you need two things: the right attitude and the right debt relief program.
Any endeavour, no matter how difficult, can be achieved if you approach it the right way. If you have the determination, discipline and self control, you should be able to eliminate the habits that got you into debt. Simultaneously, you can also develop the right skills and habits to make sure that you will only go through this road once. Given that the road is not easy, you’d better make sure you stay out of debt for the rest of your life.
Finding the right debt relief program involves a careful analysis of your finances. You need to understand the types of debt that you have and your ability to make payments on your credit obligations.
Your efforts will be easier if you make a budget plan. This plan will identify your income and the various expenses that you spend on every month. Whatever is left after the basic necessities is called your disposable income. This is what you can allot for your debt payments.
If you have just enough to cover the minimum of your debts, you have the option to go through debt consolidation - either through a consolidation loan or debt management/credit counseling. The whole idea of these options is to help stretch your payment period to 5 years or less - depending on how much you can afford to pay every month. The goal of a longer term is to make your monthly payments smaller. That way, you still have enough to put into your savings.
On the other hand, if you cannot meet the minimum payments of your debt, your option is debt settlement. This type of debt relief will involve negotiating with your creditors so they only make you pay for the agreed settlement amount. This is usually lower than your current balance. Once you have paid that off, the rest of your debts will be forgiven. This usually takes 2-4 years to complete.
The fastest debt relief option is bankruptcy. If you qualify for Chapter 7, you may find yourself debt free in a few months. If you only qualify for Chapter 13, that could take a couple of years - but it is usually faster than debt settlement. Of course, you still have to work on your badly damaged credit score.
These different options will get you out of debt in 5 years or less. Consider your choices carefully. And make sure you learn the important lessons that will help you stay out of debt.
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