Debt Recovery Quizz - LOAN CONSOLIDATION

DEBT QUIZZ | DEBT PAYMENT ADVISE | DEBT CONSOLIDATION | DEBT COUNSELING

With the popularity of credit cards, mortgages and car loans, most people can't avoid being deep in debt at least once in their lives. Are you digging yourself deeper into a debt hole or gradually crawling out? Knowing more about your options and their consequences will help you handle debt better and may get you out sooner. Take our quiz to see how much you really know about debt.

Most compulsive debtors will answer "yes" to at least eight of the following 15 questions.

1. Are your debts making your home life unhappy?

2. Does the pressure of your debts distract you from your daily work?

3. Are your debts affecting your reputation?

4. Do your debts cause you to think less of yourself?

5. Have you ever given false information in order to obtain credit?

6. Have you ever made unrealistic promises to your creditors?

7. Does the pressure of your debts make you careless of the welfare of your family?

8. Do you ever fear that your employer, family or friends will learn the extent of your total indebtedness?

9. When faced with a difficult financial situation, does the prospect of borrowing give you an inordinate feeling of relief?

10. Does the pressure of your debts cause you to have difficulty sleeping?

11. Has the pressure of your debts ever caused you to consider getting drunk?

12. Have you ever borrowed money without giving adequate consideration to the rate of interest you are required to pay?

13. Do you usually expect a negative response when you are subject to a credit investigation?

14. Have you ever developed a strict regimen for paying off your debts, only to break it under pressure?

15. Do you justify your debts by telling yourself that you are superior to the "other" people, and when you get your "break" you'll be out of debt overnight?

How did you score? If you answered yes to eight or more of these questions, the chances are that you have a problem with compulsive debt, or are well on your way to having one. If this is the case, today can be a turning point in your life.

We have all arrived at this crossroad. One road, a soft road, lures you on to further despair, illness, ruin, and in some cases, mental institutions, prison, or suicide. The other road, a more challenging road, leads to self-respect, solvency, healing, and personal fulfillment. We urge you to take the first difficult step onto the more solid road now.

Debt Solutions - How they can help you

1. Debt Consolidation: This is one of the solutions to credit card debt and other bills. Here creditors agree to cut down the interest rates and eliminate or reduce late payment charges. You need to make a single monthly payment to your consolidation company which then distributes the money to your creditors.

2. Debt Settlement: With this method, the company helps you to negotiate and reduce your outstanding debt/bills by 40-60%. You'll have to pay a fixed amount each month to your settlement company. The payments accumulate into lump sum cash after months. The lump sum cash is then paid off to your creditors.

3. Debt Management (DMP): This involves a credit counseling session wherein a credit counselor analyzes your finances and debts. The counselor prepares a budget for you so that you can put in more cash towards debt payment. If you are knee deep in debt, the counselor may suggest a DMP wherein he negotiates with your creditors in order to lower the interest rates and cut down late fees.

4. Self Repayment plan: This is a self-help plan using which you can pay off debts on your own. No professional help is taken here. The self repayment plan will be successful if you follow a tight budget on a monthly basis.

5. Bankruptcy: Filing bankruptcy is no doubt one of the debt solutions. But it should be considered as your last resort because it hurts your credit and brings down your score by 200 points or more. Hence it's better to avoid bankruptcy and look for other debt solutions.

6. Ostrich Method: This method of dealing with debt involves taking no steps to pay off debt. It is based on the concept that you ignore debt and it will vanish. However, it is not advisable to ignore debts because your credit will be ruined if you don't pay. Moreover, your creditors may sue you or the collection agencies may harass you constantly.