Debt can be very embarrassing. Despite being a simple four-letter word, it has its own complications. In fact, it is an experience that can crowd out the most critical aspects of your life. Although we dread debts, our lives revolve around them and we can never run away from debts. Imagine how it feels to receive that reminder call from your creditor at the end of the month requesting for payment when you’re not yet prepared. If you are currently battling debt as a low-income earner, then don’t let it hound and overpower you anymore. Below are some of the debt relief options you can consider.

Debt Consolidation

You can apply for a new loan and use it to pay all of your other unsecured liabilities and consumer debts. In other words, you combine multiple debts into one large debt but with relatively favorable payment terms like low monthly payments or low-interest rates. Debt consolidation can help you deal with various types of loans including student or credit card loan. There are many ways you can consolidate a debt. Some of them include:

• Obtaining a New Credit Card - Search for a new card with a lower interest rate. Compared to unsecured bank loans, credit cards have lower rates that can help you better manage your debts. In the event you have a good credit history, you can qualify for a low-interest credit card. Transfer your balances into a single credit card to ease the pain of debt. A credit card debt often comes with revolving credit limits that you can utilize. It works with various types of loans including unsecured personal loan, credit cards, store cards, payday loans, charge cards, and unpaid bills.
• Taking a Consolidation Loan - These types of loans are sometimes provided by non-profit companies and banks. However, be careful when using them because they may come with additional fees that result in your payments being higher.

Use a Debt Settlement Company

Also called debt resolution or debt negotiation companies, this is a debt relief method where a professional negotiates with your creditors to reduce the amount you own them. Through this program, you can end up paying a smaller amount than you owe. Working with professionals is helpful because if you negotiate with your creditors alone, it can end up being tiresome and ineffective. These companies will negotiate on your behalf with your lender or lenders for a more favorable loan repayment plan.

Seek a Debt Forgiveness Program

Debt forgiveness programs serve to cancel some or even all of your outstanding debt. It can be something like a student loan or any other burdening loan. Most of these programs will forgive, cancel your debt or repay it. The plans may also require you to work in public service or other professions like health care or education sector, particularly in low-income areas. You can also get debt relief by participating in volunteer programs or serving as a militant.

On the contrary, debt forgiveness comes with hidden traps that you should be aware of. Before accepting debt forgiveness, be careful not to be trapped into these pitfalls. Some might damage your credit score down the line. But this doesn’t mean you should refrain from taking a debt forgiveness plan. Some of the plans can offer to forgive you up to half the full amount while others offer total debt forgiveness.

File for Bankruptcy

As a low-income earner, you may not qualify to file for Chapter 13 Bankruptcy Act. This doesn’t mean everything is lost. Chapter 7 Bankruptcy Act allows low-income individuals struggling with overpowering debts to file for bankruptcy. You can file for bankruptcy to help you rid of unsecured debts. This can help you rebuild and recover from a financial catastrophe. While it may sound easy, the biggest challenge that comes with it is where to get funds to hire an attorney. Based on your location, you can find a non-profit legal aid to help you in your bankruptcy case.

You can also ask the court to help you waive the filing fee. The amount required to file for bankruptcy and related paperwork is about $300. For you to qualify for this waiver program, your family income should exceed $36,375 per year and you must meet other requirements. Even though bankruptcy may help to relieve your debt burden, it can negatively impact your creditworthiness.

Conclusion

Debts surround all of us and because of this, there are numerous viable solutions to find our way out. If you've found yourself struggling to keep up with your debt you should seriously consider the options we have mentioned.