Debt Relief Options

There are many options available, learn more about the right solution to your debt problems. A Debt Relief Program can reduce your high interest rates and consolidate your debts into one affordable low monthly payment helping you avoid bankruptcy.

Debt Options

1. Bankruptcy.

Usually this is a last resort for most people due to the fact that it can appear on your credit report for up to 10 years. Bankruptcy is also a matter of public record for anyone that wants to know. Filing bankruptcy requires you to appear in Federal Court for at least one hearing, possibly more. In addition, certain types of bankruptcy require a court-appointed trustee to control and oversee your estate.

2. Credit Counseling

Often this is a non-profit organization that is funded in-full or in-part by contributions from creditors. You make one monthly payment to the Credit Counseling Company, then they disburse your funds and pay each of your creditors for you.

A Credit Counseling Company will usually be able to get your interest rate lowered and stop the harassing collection calls. It is important to understand, however, that you will pay the full balance owed on your various accounts plus interest. No debt relief on the outstanding balance will be granted.

3. Debt Consolidation Loan.

Certainly not the worst thing you could do, but naturally you must own a home, have some property or have some assets to pledge as collateral for the loan…otherwise a loan isn’t even an option at all. In addition, you cannot borrow your way out of debt. You’re still going to have to pay back the money to someone eventually.

4. Do Nothing.

For most people this is not a practical solution, but it is an option. An example where doing nothing might work would be if you were unemployed and had no assets a creditor could pursue. Essentially you would be “judgment proof” and your creditors would (at least temporarily) hit a roadblock. However, this does not mean that they can’t come after you at a later date…when you least expect it.

5. Debt Relief Plan - Settle For Less Than Full Balance.

Debt Relief Plan