In the Virgin Islands, debt management practices help consumers handle existing debts and avoid financial hardships in the future. Bankruptcy is a viable solution for consumers with overwhelming debt, but it isn’t the best solution for everyone. A financial planner helps consumers create a better plan for avoiding common mistakes and mismanaging their debts.
Review Your Credit Report
A review of all three credit reports shows a consumer where they are financially. Any outdated or older debts that aren’t valid are removed by filing a dispute through the credit bureau. Creating a list of all debts and current balances helps the consumer create a better plan for managing their debts.
Create a Plan for Paying Off Smaller Debts
Debts that are the result of a charge-off are great options for obtaining a settlement offer. Collection agencies are more likely to accept a settlement offer just to collect any money for the debts. A financial advisor negotiates with collection agencies and arrives at a more affordable solution for eliminating the debts. Installment plans are often available for debt settlement.
Eliminate Credit Card Debt
Credit card debt increases every month whe there is an existing balance on the account. By sending more than the minimum payment, consumers eliminate the debts faster. All credit card accounts with higher than average interest rates should be paid off first. Financial planners offer plans for paying off debts without creating financial hardships or mismanaging monthly obligations.
Paying Extra On Your Mortgage
Financial advisors suggest adding a little to each mortgage payment for reducing the debt at a faster rate. The additional payments also create a surplus that prevents late payments in the future. If the consumer experiences job loss or a reduction in earnings, the surplus prevents future financial issues that lead to foreclosure.
In the Virgin Islands, debt management practices involve careful plans for eliminating debts and preventing more damage to the consumer’s credit history and score. Plans start with paying off smaller debts first and increasing payments for larger debts. Credit card debts are among the most common issues that lead to financial hardships. Consumers who want to learn more about debt management plans contact Cane Bay Partners right now.