Getting Out of Debt

Free yourself from debt.

Becoming overwhelmed by debt happens for many reasons. Some people lose their jobs. Others suffer medical emergencies, and then there are those who don’t manage their money properly.

As KOFE helps you improve your money skills, it also assists you in solving your debt issues. Financial coaches specially trained in finding the correct debt solution for your situation are available full-time. They understand how debt impacts people’s lives and work diligently with creditors and other lending institutions to resolve your financial challenges.

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Working with a financial coach

You can call a financial coach or enter online questions whenever you need answers. They provide free consultations, too. Simply call and a qualified coach will review your budget and go over your financial circumstances.

They may recommend specific steps you can take on your own or refer you to a debt relief program if your financial situation warrants it. In either case, you’ll have an expert guiding you toward the best possible solution for your debt issues.

Potential solutions

The following list provides some detail on the debt solutions you can use to avoid bankruptcy:

• Do it yourself (DIY): In some cases, you can negotiate with your creditors and lower your interest rates and create a new monthly payment plan. This means more of your monthly payments go to reducing your debt instead of paying off interest. Begin with the highest interest rate card first and pay one card at a time.
• Debt consolidation: This is where you roll multiple debts into one payment. You can transfer existing credit card balances to a low-interest credit card, or take out a personal debt consolidation loan through a bank. In either case, you’ll need good credit to qualify for the ideal terms needed to help you lower your debt.
• Debt management program: If you and your coach determine your debt problems are too big to handle on your own, or your credit score is low and prohibits you from qualifying for DIY consolidation, then they may recommend that you enroll in a debt management program. This consolidates your debts, lowers your interest rates and, in many cases, gets penalties and fees eliminated from the accounts included in the program. It also protects your credit score.
• Debt resolution: This option is used when you are in an emergency situation. You can call the collection agency holding your debt and offer to pay them as much as you can. If they agree, they will discharge the remaining balance of the debt. Make sure it has been noted your credit report that the debt was paid in full.
• Bankruptcy: There are two kinds of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 liquidates your assets to pay off the debt. Chapter 13 sets up a payment plan. Once it’s through, you must take an initiative to repair your credit.

Resolving debt issues is intimidating for many people. They feel alone and helpless. You won’t be alone. The financial coaches at KOFE will be with you, providing specialized insight and guidance on solutions that work. Give a financial coach a call today.