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debt relief programs

Debt Relief Programs: Which is Right?

By: Michael Millington


 

Many financial issues stem from carrying debt. While many Americans have some sort of debt, most don’t know what to do when it grows out of hand. With debt coming from credit cards, medical bills and personal loans (among other things), it can be a hassle to keep track of it all, let alone pay them all off. In order to help with this situation, there are multiple debt relief methods in place that can be utilized. There are debt relief programs can help to either eliminate your debt altogether or, at least, lessen it to a certain degree. These are a few forms of debt relief that act as your options.

 

Finding the Right Debt Relief Programs for You

Debt Consolidation

A debt relief option that allows for debt organization rather than debt elimination, debt consolidation is a valid option for those who have debt but good enough credit to garner a consolidation loan. Debt consolidation allows you to pay off multiple debts with one loan. If you have the ability to acquire a loan of sufficient size, you would only be left with one debt instead of multiple debts. The benefit can be seen in the lack of extra late fees or extra interest fees.

 

Debt Settlement

For this form of debt relief program, the main goal is to minimize the amount of debt you have in order to pay it off sooner. You can negotiate your unsecured debt through a debt settlement company while you make small payments to a specialized account in order to create the settlement necessary. In regards to other debt relief programs, debt settlement is a great method of helping to eliminate your debt without having to affect your credit.

 

Bankruptcy

Bankruptcy has the distinct ability to completely eradicate your unsecured debts in the shortest amount of time relative to the other forms of debt relief. While bankruptcy has the most immediate way of ridding you of your debt, it also does the most damage to your credit. A bankruptcy filing can remain on your credit record for up to ten years, actively preventing you from signing up for new credit lines for a while. If you need to file for bankruptcy, be sure that other debt relief programs won’t be more suitable for the job.

 

Debt Management

Credit counseling is another method of debt relief, however it only allows you to learn more about your existing debt. Normally, it doesn’t have the same effectiveness as other forms of debt relief. However, there is the option of debt management that can be suggested by your credit counselor. A debt management plan can help to lower the amount of debt you have by helping to remove any late fees or interest fees you have. This can be beneficial if only to remove any extra fees added to the original debt over time.

 

There are multiple ways to achieve debt relief, but each one has their own benefits and methods of working. To determine which debt relief program is the one for you, be sure to research each form available. You can learn more about bankruptcy, debt consolidation, credit counseling and debt management, and debt settlement from us. Take advantage of the resources you can find here to become better informed of your debt relief program options.

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