Consumer Debt Relief-Which Program Is Right For You?
- Author Joseph Hernandez
- Published June 23, 2011
- Word count 495
Nowadays, so many people are experiencing severe and drastic financial difficulties. These problems have forced debtors to think about how they can settle their debt legally. However, remember that choosing the right consumer debt relief program is dependent upon your financial circumstances and your goals.
In case you aren't too far deep with large debts and cannot even come close to making the minimum payments, you do not have to file for bankruptcy to avail these programs.
For self-interest reasons, the credit card companies would not like you to declare bankruptcy. In most cases, it's in your best interest not to declare yourself bankrupt either. So what other options are there? Thanks to the credit card companies, there are options:
-
Debt consolidation
-
Debt management or credit card debt negotiation
-
Bankruptcy
To put it briefly, here are the advantages and negatives of combining your entire debt load into one payment via a loan:
-
You are transferring "bad debt" to "good debt". Consumer credit cards are composed of compound interest. This implies that they charge you interest and additional interest that has accumulated during the month. Because of this, credit card debt takes an extremely long time to pay-off. On the other hand, interest on home equity and many personal loans is charged just once per month.
-
A debt consolidation loan is commonly paid-off in 5-10 years. Credit card debt is very similar to the energizer bunny; the debt keeps going and going….
-
When you combine your debt into a single payment, your FICO score increases. Remember, unsecured debt is bad debt. Whenever you eliminate bad debt, naturally your credit improves. On the other side, if you know that you are not disciplined, a debt consolidation loan would be a very risky move. Why? Since you suddenly will have loads of available credit, you will be like a kid in a candy store!
A credit card debt settlement company works on your behalf to cut the original quantity of debt that you owe by about 50%. It can be in the debt negotiation company's best interest to obtain the best settlement possible, for they usually work on commission. When evaluating a company for settling your credit card debt, make sure it is completely FTC complaint. Remember, do some homework when you hire a credit card debt settlement company.
I really don't need to elaborate about bankruptcy. Apply it as a last resort. File for chapter 7 if your situation is far out of control. In the event you qualify, you'll not be required to repay your debt. If you do not meet chapter 7 guidelines, I don't recommend filing for chapter 13. The reason being is that in chapter 13 you still have to repay a portion, or most of the debt.
Essentially, there are advantages and disadvantages to each of the above strategies. You will have more insight in regards to the best debt relief program that is right for you if you perform a little bit of research. Good luck!
In order to successfully wipe-out your debt fast and safe, It’s critical that you know the best way to get out of debt
[http://nomoredebt.debtfreesolutions.mobi](http://debtfreesolutions.mobi/nomoredebt/)
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Acura MDX and Honda Pilot: Which one will you choose?
- How to Save Money Every Day With Promo Codes
- Fresh Paint for a Fast Sale: Here's Why You Should Paint Before Listing
- The Invisible Impact of Missing Teeth: Why Replacing Them Matters
- Detecting Dental Beauty: 5 Core Traits of a Beautiful Smile
- Timeless Toothcare: Dental Hygiene Tips for Seniors
- Saving Old Smiles: How In-House Dental Discount Plans Help Seniors
- Too Much of a Good Thing? Signs You’re Brushing Your Teeth Too Hard
- Why a Root Canal Might Be the Best News for Your Tooth
- What is DuckDuckGo?
- The Role of Lighting Stores in Brampton: Shaping Spaces for the Future
- The Role of Commercial Cleaning Services in Auckland: A Comprehensive Guide
- Exploring the World of Chauffeur Service: Benefits, Challenges, and Best Practices
- Nerds and Geeks: They still live on!
- IQ Tests: History, Uses, and Choosing a Reliable Resource
- 8 Great Ways To Teach Kids About Oral Hygiene
- App Development as a Catalyst for Business Growth
- Costs of arranging a Mortgage in Spain
- TikTok and Instagram: Ways you will grow and learn.
- Mustang GT: Ford Motor Company is a Rising Force!
- 10 Ways to Transform Production Scheduling in Business Central
- Elevating Your Home with Bold Decor and Vintage Carved Doors
- The Ultimate Skin Care Guide for Every Weather
- Do I Need Insurance When I Rent a Boat?
- Casino Bonuses: How to Maximize Your Rewards and Enhance Your Gameplay
- Was Joseph Stalin a good or bad leader of the Soviet Union?
- Top 5 Slots with the Highest RTP: A Winning Guarantee or a Myth?
- The Thrill of the Hunt Discovering the World of Location-Based Entertainment
- How Much Is the Hermès Cleaning Fee?
- Does Hermès Offer Free Repairs?