5 Quick Tips On Managing debt and Personal Bankruptcy

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Data relased by American Bankers Association paints a gloomy picture of personal and home loan delinquencies during the fourth quarter of 2008. With loss of 3 million jobs in 2008, with two million of them occuring in the fourth quarter, delinquencies are unlikely to see any improvement.

So what does the average Joe do about the debt and repayment or even bankruptcy problems, and how he can protect himself and even profit from the grim situation.

1. If you are in the delinquents list you must immediately seek credit counselling through a reputed, certified and trained counsellor. A credit Counsellor can advice you on managing your debt and money matters by developing a budget.

2. Research the background of the credit counsellors well as there have been a rising trend of shady operators promising to erase your bad credit reports for a fee and doing the vanishing trick. There is no way information can be removed from your credit report.

3. Do not believe in promises of a miracle and debt free life. Your debt and delinquency can only be managed and pressure eased with professional restructuring to suit your needs. Debt cannot be wished away or wiped out without settling it.

4. If you feel you cannot settle your debts and bankrutcy is the only option, you can discuss with your creditors who may be willing to settle for a smaller cash payment or stretch the repayment over a longer period.

5. You may have other issues such as debt collectors knocking at your door and you may face some harrassment. There may be instances of the debt collectors breaking the law. Check with or write to the Federal Trade Commossion if you are in US. Most countries have Fair Debt Collection Practices Act in place and you can refer to them for any violation of the debt collection codes subscribed to by the banks.

Debt and delinquencies are a common problem in tough times. Any one can find himself in a messy situation due to bad financial planning. However we have to confront the issues and get a grip. The magnitude of the problem can be reduced consdierably. What one has to remember is not to panick and resort to dubiuous remedies in such situations. Take the lawful course of actions and you will be safe and the problem of debt can be surmounted.

Srinivasan Gopal is an author, syndicated writer and a management professional.  Loves the internet and webmaster of www.internetbusinessprofit.info/affiliate-marketing a website where you can find answers to many of your How To's on affiliate marketing

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