Quick Guide to Consumer Debt Rescue Options
When you have high credit cards and other debts, bills are piling up, and you're stressed over finances, it's important to know the credit card debt relief options available to you, and how each options compares.
Debt Management - Credit Counseling
Here's how debt management programs work. Normally a debt relief specialist or credit counselor will assess your situation by asking the following question: How much unsecured debt do you have? Unsecured debt includes credit cards, store charge cards, gas cards, medical bills, utilities, etc. It's okay to estimate. In other words, any debt you have that isn't "secured" by real property. Unsecured debt does not include your home or car.
Once your debt relief specialist has your total amount of unsecured debts, they will take a quick peak at your personal finances to see how much you can afford to pay each month to pay off your unsecured debts. Then they will provide you with a free debt relief savings estimate to show you how much money you could save each month and/or how quickly you could be debt free. Finally, if you decide to enroll in a debt management program, they will contact creditors on your behalf to arrange for interest rates to be reduced, fees or penalties to be waived, or payments to be lowered to provide you debt relief. Eventually a debt consolidation, debt management plan can help you remove stress, consolidate all of your debts into one convenient and more workable payment and help you get out of debt much faster than you could on your own - typically in three to five years. To see how much debt management could save you, click here for your free credit counseling/debt management analysis
Debt Settlement - Debt Forgiveness
With debt settlement, debt mediation, or debt forgiveness, credit card companies may agree to settle your debt or "forgive" a significant portion of your debt in return for you agreeing to pay them a lump sum. In today's economy, credit card companies may be able to offer you a debt reduction of up to 60% or more. While debt settlement typically will have more of a negative impact on your credit than debt management, it is becoming more and more acceptable and popular with consumers because it can quickly erase or eliminate credit card debts, save thousands of dollars, and it is often much preferred over personal bankruptcy. To see how much you can save through debt settlement, click here for your free debt relief analysis
Personal Bankruptcy
In 2005, the Bankruptcy code was changed to require that debtors meet additional conditions or criteria before qualifying for bankruptcy. Despite the fact that these new conditions make it more difficult to qualify for bankruptcy, this form of debt relief still has its rightful place among viable debt relief options. Yes, bankruptcy is a serious financial decision that can have a negative long-term impact on your credit and financial standing, but it also can remove the crushing weight of debt and offer a fresh start. For more information, visit http://www.uscourts.gov/bankruptcycourts.html
Quick Guide to Consumer Debt Rescue Options
When you have high credit cards and other debts, bills are piling up, and you're stressed over finances, it's important to know the credit card debt relief options available to you, and how each... Read more
Understanding Your Free Debt Relief Analysis
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