If you want to pay off debt fast, the best way is a two-pronged approach: Debt consolidation means taking out one new loan large enough to repay some or all of your outstanding debt.You get the money, pay off your accounts, and then make a single monthly payment to pay off the new debt.This enables you to simplify your finances and keep up with payments more easily, and it enables us to work with your creditors on possible reductions in interest rates, finance charges, and other fees.
To find better ways to pay off debt, consider the services available from American Consumer Credit Counseling (ACCC), a nonprofit agency dedicated to free credit counseling, affordable debt management, and showing people how to get rid of debt without ruining their credit score.
It won’t prevent you from getting credit in the future, but for a time some credit products will be unavailable to you and others will come at very steep prices.
Also, not all debts can be discharged in a bankruptcy. Collection accounts fall off your credit report after seven years.
Debt is costly and can prevent us from reaching financial goals (or at least prevent us from reaching them when we’d like to).
Some people consider credit card debt bad and mortgage or student loan debt good.