Effective Strategies for Debt Problems Introduction Are debt problems causing you sleepless nights? With effective debt management solutions, you can get rid of your debt problems once and for all. Current Debt Scenario According to a Nilson report, the cumulative amount of unsecured debt in the U.S. reached a staggering $972.73 billion in 2009. And considering the growing standard for expenditures, that amount is likely to multiply this year. Active credit agreements are available, but it is still becoming more and more difficult to manage debt. Debt management solutions can make it easier for you to handle your debt problems effectively. How to Manage Debt Problems There are various types of solutions available for handling debt problems. Debt management experts will first analyze your credit history and decide on the best strategy for your debt problems accordingly. If you have a low credit score, you can opt for a debt settlement program. But if the amount of your credit debt is high, there are other options too, including zero percent interest rate balance transfers and debt relief or debt consolidation programs. A professional debt analyst can guide you through these prospective solutions in more detail. Zero Interest Balance Transfer If you have a bad credit rating, you cannot take advantage of this opportunity unfortunately. Thatâ€™s why debt management experts always advise keeping your credit rating healthy. A zero interest balance transfer gives you the option to transfer money away from higher interest rate credit cards in order to pay them off for less. There is actually a nominal transfer fee of 4% in balance shifting, but you still stand to save a substantial amount of money. Many credit card companies offer this introductory rate for up to 12 months. Once the time period is over though, you can request an extension of the zero percent interest rate balance transfer option. Debt Relief Programs Debt management analysts will suggest two options: Debt Consolidation -- Debt consolidation facilitates the option of making a single monthly debt payment as opposed to a number of them. Consolidation loans are also available at low interest rates, so they are a good idea to for reducing higher interest debt payments. Debt Settlement -- This is an effective solution for larger debt problems. Debt management experts even consider it a good alternative to bankruptcy. With this
scheme, you can reduce your debt payoff by up to 50% and settle the remaining debt within a period of 36 months.