Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Bankruptcy Alternatives and other Bankruptcy topics.
Using alternatives to bankruptcy, managing your debt effectively and reducing your overbearing obligations in a timely manner requires careful thought, proper planning and a personal commitment to solve your credit problems. It also requires one more thing: Money!
All the planning, management and commitment on the planet will not result in reducing your outstanding debt without the necessary funds to make your program work. Borrowing more money, even with better interest and payment terms, still leaves you with some level of debt that must be managed to your benefit. So you might want to consider turning some of your available assets, particularly non-income producing ones, into cash. This will give you the ability to pay off your outstanding obligations, whether at full value or at a discounted amount. If you have items like a stamp collection, little used or displayed antiques or paintings, a time share you seldom use, or any other assets that are not part of your current income picture, turning them into much needed cash may provide you all the resources you need to solve your credit problems without declaring bankruptcy.