Debt Relief Options

Bankruptcy can relief you of your financial burden.  However this process stay on your credit report for 10 years and can have a negative impact such as denial of employment, insurance, and state licenses.   You can be denied of any type of credit with bankruptcy on your record. The latest changes to bankruptcy law makes it harder for some people to obtain financial relief by filing Chapter 7 bankruptcy, the method of liquidating assets to eliminate your debt.  People with higher income are no longer allowed to use Chapter 7 bankruptcy, but instead have to repay a portion of their debt under Chapter 13.  Before you can file for Chapter 7 or 13, you must complete credit counseling with an agency approved by the United States Trustee’s office. 

Credit Counseling is another popular method to relief you of your financial hardship.  With this process you pay back all of the debt balances, plus interest and fees. With a credit counseling agency, there is a dual relationship, where part of the credit counseling agency’s income comes from the client and the majority of it comes from kickbacks paid by the creditors. This can create a conflict of interest and creates doubt as to whose side the agency is really on. Also, with credit counseling, you may not be able to enroll accounts if they have been charged off. 

Debt Settlement involved negotiating with creditor to pay off a percentage of your total debts owed on your unsecured debt at agreed upon settlement amount.  This is a program not base on credit or equity, but rather on hardship.  Debt settlement is a smart alternative to bankruptcy and is considered the fastest, most aggressive approach to getting out of debt in the shortest time possible, without filing for bankruptcy.  Put a stop to never-ending minimum payments which hardly put a dent on your balance.  The effects of Debt Settlement on your credit will be less damaging than a bankruptcy mark on your credit for 10 years.

Debt settlement provides much more flexibility than credit counseling in both the monthly budget level and the types of accounts that may be enrolled. For example, if you have a really tough month and need to skip a payment, that situation can be absorbed by a debt settlement program, whereas it will cause serious problems with a credit counseling program. Further, if your accounts have “charged off” and gone into the third-party collections cycle, you can still enroll those obligations in a debt settlement program where they will be rejected by a credit counseling agency.

Debt settlement has a short term negative affect on your credit score.   However, few people with financial hardship have perfect credit to begin with. The goal is to get you out of debt in much less time and on our way to financial freedom.  Debt settlement has an immediate short term negative affect on your credit score.  In general, you credit score will decrease while you are in the program, and will start to improve again after you become debt-free.  Decrease in credit score is seldom an issue for people.  Once you complete the debt settlement program, your credit score will have an opportunity to become much higher than it was even before entering the program.

Above briefly describe some relief options.  It makes sense to seek Debt Settlement Relief.

Related Topics:

v      Debt Help

v      Debt Relief

v      Debt Advice

v      Debt Options

v      Debt Benefits

v      Debt Solutions

v      Debt Reduction

v      Debt Counseling

v      Debt Settlement

v      Debt Professional

v      Debt Management

v      Debt Settlement Process

v      Alternative to Bankruptcy