Debt restructuring is the way to reduce debt

Debt problems affecting every 100 of 1000 of people. Nowadays, consolidation and debt restructuring are offered by many companies. Debt consolidation and restructuring helps in debt reduction and in finance management and again to start  money management with more knowledge


1.List all your debts which are unpaid. Include the owed amount, monthly payments and interest owed. This will give you a overall picture of your finances before you start the process of restructuring.

2.Contact your home loan lender to discuss the terms of your mortgage. This will not help in debt reduction, despite the debt restructuring  will make payments more manageable and easier to pay.

3.For restructuring process a loan should be asked from credit union. It feels very awkward if you ask for more money when you are in knee-deep debt, but usually credit these unions lend cash at an interest of lower rates. This means one can use the loan from this credit unions for consolidating debt.

4.One can borrow money against an insurance policy. It's a good process to get money to consolidate debt, as one do not have to pay. If you do not pay the loan, your beneficiaries will receive a lower pay out, when the insurance policy gets maturate.

5.A credit card company has to be found that provides a deal for balance transfer. Use it to consolidate debt. After that shift all your credit card debt in the new credit card. Pay for what you can afford each month to reduce debt.

6.Taking a home equity loan. If you have home equity, you can lend money against it on favorable conditions. That money which you receive should be used to consolidate debt.