article thumbnail

Debt Consolidation vs Bankruptcy: Which is Better?

Sawin & Shea

Two of the most common options for dealing with unmanageable debt are filing for bankruptcy and pursuing debt consolidation. Bankruptcy and debt consolidation are distinct solutions, each with advantages and potential drawbacks. However, it’s important to remember that this does not eliminate debt.

article thumbnail

FAQs About Debt Management Plans

Debt Guru

A debt management plan (DMP) is an agreement between a debtor (that’s you, the person in debt) and a creditor (think: your bank or your credit card company) that tackles your outstanding debt. If you’re feeling buried under the weight of multiple debts, a DMP might be the solution to escape the crush.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Can I File Bankruptcy on Just My Credit Cards?

Sawin & Shea

What other debts do I owe? There are other options including credit counseling, creating a debt management plan, and taking out a debt consolidation loan. Has my credit score gone down? Will my total income increase or decrease in the near future?

article thumbnail

Debt After Death: 9 Things You Need to Know

Credit Corp

If there isn’t enough money left in the estate to cover those revolving debts, they’re usually simply written off. Student Loan Debt. Federal student loans and PLUS loans get discharged if borrowers pass away. Find Out Who’s Responsible. Stop Using Credit Accounts.

article thumbnail

Americans Are Carrying Record Household Debt into 2024

Collection Industry News

The largest increase in any category was credit card debt, which swelled by 16.6% Auto loan and mortgage debt increased by 4%, while student loan debt saw a modest rise of 1.6%. It is important to remember that household debt is primarily composed of mortgages, auto loans, credit cards and student loans.

article thumbnail

How to Manage Your Debt Before Buying a House

Credit Corp

To calculate your DTI, simply divide your monthly debts by your monthly gross income. If your resulting percentage is higher than 50%, you’ll want to work on paying off some of your debts. Debt Management Tips. This way, you’re only paying interest on one debt instead of multiple. Compare Mortgage Rates Here.

Lender 106
article thumbnail

9 Ways to Pay Off Debt without Spending Your Paycheck

Credit Corp

These debts include high-interest debt and debts owed for depreciating assets. Next, shift your focus to other higher-interest debt, such as student loans. Finally, focus on debts for depreciating assets such as auto loans. This means that you’ve now freed up $200 a month of money.