People have many options to settle their debt, but among those options there are two options which really need to be taken into consideration. These are debt settlement and debt consolidation; these options imply strategies you have to apply on your creditors.
The first option, debt settlement, actually is a negotiation to reduce your debt. The government pays for that reduction so the creditor doesn't lose anything, expect for the interest rates you would have paid throughout the years. But when you are threatening them with bankruptcy they will surely forget about those interest rates and try to obtain as much as they can from you. This method requires you to hire a debt settlement company or a lawyer. You can do it by yourself, but experts don't recommend it because it is not an efficient way.
The second option, debt consolidation, is a good strategy too, but this strategy will be focused on your interest rates and how you can benefit from them. You get a loan at a lower interest rate to pay all the loans you have and you just pay that loan. This way you can save a lot of money. Think about how much money you can spare by reducing your interest rates with just a few percents.
How are you eligible for either of these methods? Debt settlement requires clients to have more than ten thousand dollars; this must also be unsecured debt. However, if you are not eligible for that you can go for debt consolidation, it works for lower than ten thousand dollars and it doesn't need to be unsecured debt.
You can find debt settlement and debt consolidation companies online, in newspapers, on television, and even if you take a walk in your neighborhood; many companies appeared after the recession, so there's a big chance to have some in your neighborhood too. If you are unsure of the companies you want to hire you can check them on the Better Business Bureau to make sure that they are legitimate. These options can be life saving if used at the right time and you can become free of debt or at least reduce a part of your debt fast.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link: Article Source: http://EzineArticles.com/?expert=Lisa_Archer-Jones |
Posts
1 comments:
It's a good thing that I came across your blog post like this can be a big help for those people who’s really having a hard time paying their credit cards. You should post more info like this.
Post a Comment