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Summary: In order to legally eliminate debt, a person can use a debt consolidation loan, they could negotiate with creditors and they could declare bankruptcy. Borrow money from a lender to pay off all credit cards at a lower interest rate with help from a business analyst in this free video on financial planning and debt management.
Terry Kuykendall is currently a budget analyst for the military in Washington. She is an accountant who has worked at firms helping people deal with personal and business debt.read more
"How do you get out of debt legally? There's a couple ways. One would be a debt consolidation loan. Borrowing money from one lender to pay off all your credit cards at a lower interest rate and therefore a lower monthly payment. Another would be negotiating with your present creditors on a case by case... and negotiate with them on what you can afford. Tell them what your situation is so that you can maybe get some of the fees and interest rates knocked down so that you can make bigger payments and get it paid off quickly. Bankruptcy is a legal form of paying off debt. However it's not a recommended form because you will... inevitably get all your debt paid off but your going to put a black mark on your credit for seven to ten years which will make you unable to obtain any sort of loans whether it be a vehicle loan, a home loan, anything for seven to ten years while that bankruptcy is on your record. So once again, three ways to get out of debt legally are debt consolidation loan, negotiating with your creditors and bankruptcy."
eHow Article: How to Eliminate Debt Legally
Meet Mark P Cussen, CFP, CMFC eHow's Personal Finance Expert.