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Loan Relief and How to make it Work for You

By: Michael Millington

Loans can help you in a pinch with a large sum of money in a short period of time. Since the money is being borrowed, the loan works similarly to a credit card billing cycle. Each month you have a payment date that you must meet (like a credit card). However, should you be unable to meet your minimum payments, your loans might end up costing you. Loan relief might be your only option to alleviate your debt issues. There are multiple ways to achieve loan relief, each of them with benefits and detriments. Here we will list various ways to eliminate your loan debt and their effect on your finances.

Loan Relief through Debt Settlement

Debt settlement has the distinct ability to lessen the amount of debt you have. Unsecured loans can benefit greatly from debt settlement depending on the size of the loan and the percentage you can settle for. You can either look to settle loans on your own or through a settlement company. While you would have to pay to use professional help, you would avoid needing to produce a lump sum payment immediately. Making monthly payments towards your loan relief system can take time, but you would end up saving money in the long run.

Loan Relief through Bankruptcy

Filing for bankruptcy is referred to as a last resort for good reasons. Having a bankruptcy filing on your credit record can prevent you from improving your credit over years. This can mean a lack of financial maneuverability for a maximum of ten years. However, the other side of bankruptcy is the debts it discharges. Loan relief can be instantaneous through bankruptcy, effectively eliminating your obligation to pay. To some, the positives of ridding yourself of debt outweigh the credit detriments. Other loan relief options may take longer, but bankruptcy can get rid of loan debt within a few months.