Realistic Options For Debt Relief

Realistic Options For Debt Relief – Spencer Coffman

Debt relief is something that many people in today’s world need. This is an unfortunate situation brought about by a vast lack of financial education. If you are someone who is in need of debt relief then you really have only two options. Of course, there are other options but, realistically, there are only two that you should consider.

Option Number One

The first one is bankruptcy. This should only be done if you are so far in debt that it is a hopeless situation and you need to press the reset button. Bankruptcy will drop the hammer on your credit score which will make it much more difficult for you to rent a home, buy a home, get a loan, et cetera. If you are already established in your living space and you don’t need to worry about credit then bankruptcy may be a good option for you.


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Keep in mind that when you file bankruptcy, the bank will take any possessions they can to repay the creditors. Of course, this depends on what you declare bankruptcy on and how you have everything set up. One thing to note is that, at the time of this writing, bankruptcy does not wipe out your student loans.

Bankruptcy should be your last resort. It needs to be an option that you carefully consider and look at all of the consequences. You need to know and understand exactly how it will affect your life and your future. Therefore, get as much counsel as possible and meet with a few different advisors before going down this road.


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Option Number Two

The second option is paying off your debt. Duh right? However, this can be more daunting than it seems. Many people don’t know where to begin and the idea of paying everything off can be very overwhelming. Therefore, remember to keep it simple.

You need to understand and know that only you can pay off your debt. You cannot take a loan out to pay it. Don’t mess around with complicated refinancing, moving companies, or anything like that. No. Simply get it all down on paper and start paying them off.

List all of your debts from smallest to largest and then start paying them in that order. Pay nothing else other than the minimum payments on your other debts. Then, take any and all leftover money that you have and put it towards your first debt. Keep paying the debt until it is gone.

Then once that first debt is gone take the money from there and put it toward the second debt. Keep compounding your payments until all of your debt is gone.


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One thing you can do to help make paying your debt a little easier is debt consolidation. You can learn more about whether or not debt consolidation is for you in this article. Only do this if you really know what you are doing and you can afford to pay it off before the interest rates cost you more than it is worth. Realistically, debt consolidation is not for you because you are not going to understand it well enough to make it beneficial.

Debt consolidation is a cruel way of taking advantage of people that they know will fail to make the payments. Thereby making them more money and costing you even more.

Basically, if you need debt relief you need to stop borrowing money and you need to get another job so you can pay back the money you owe. That is it. Yes, it is an easy concept but it is hard to do. Remember that nothing good comes easy.

You need to be motivated to get out of debt and motivated get it done. You can do it, if you truly want to. Therefore, work hard and get yourself out of debt. You got yourself into it, now it is time to get yourself out of it.

If you wish to read more, you may want to check out Relax and Unwind. There is an excellent chapter in there about getting your finances in order.


For more great information take a look at the supplemental content on this website and check out these great blog posts. In addition, feel free to connect with me on social media.

Thank you,
Spencer Coffman
SpencerCoffman.com