In situations of risk and accumulated debts, there are ways to try to solve the problem. You can always find solutions in the financial institutions themselves , as well as through certain legal tools that can play in favor of the debtor and alleviate their situation. In the same way, designing an action plan for a rigorous management of income and expenses can be helpful for situations that are not so extreme.
How to solve my debts?
There are several ways to solve, or try to solve, the problem of debts. In the first place, it is possible to go to the financial institutions with which a debt is held. The key to this option is to propose a solution to the same institution through different options, such as the renegotiation of debt to reduce as much as possible the amount owed, get an extension in the term or other type of agreement.
Also, through the option of the reunification or consolidation of the debt
It is possible to agree with the entity to regroup several debts into one debt , being able to reduce the amount through a single payment.
Another way to solve a critical debt situation is to use legal tools that can act in our favor. Filing bankruptcy through the so-called Second Chance Act , designed especially for entrepreneurs and individuals who have contracted obligations that later have difficulties to comply, may be the best option, although to qualify for it must meet some requirements . In the same way, debt cancellation can be requested through an out-of-court agreement with the creditor, on whom it will depend to accept or not accept said proposal.
How to get out of debt in the short term?
In order to eliminate short-term debts, a strong control over the level of expenses and the amount of debts we accumulate is recommended, in order to avoid over-indebtedness that could complicate the payment of the same, emphasizing the most priority ones. Eliminating unnecessary expenses and reducing leisure (meals in restaurants, unnecessary purchases) is a difficult, but effective way to assume the payment of debts in the shortest possible time.
When it comes to taking overdue debts, the best option is to develop a budget and an expense plan to be very clear who is owed, how much and what is the risk that this debt continues to increase interest, as occurs with cards of credit. In these cases, it is recommended to make the minimum payment of the debts with the lowest interest rate, and dedicate most of the budget to the accumulated debt with the highest interest.
Finally, in case of a serious situation, you can go to legal advice through lawyers for debt and other help services for people with debt.