Professional Debt Solutions that Can Help You Now
As many Americans already know, personal debt can become a major financial issue. Whether it’s an overdue credit card or a medical bill, debt can present long lasting problems. Fortunately, there are multiple forms of professional debt solutions available to help. The ability to alleviate debt varies with each solution varies in effectiveness, but they more or less arrive at the same result. Here we will list a few professional debt solutions and what your chances of success are with them.
Professional Debt Solutions Available to You
The first of multiple professional debt solutions is also one of the most effective and controversial. Bankruptcy has the ability to completely eradicate your unsecured debt within months after filing. This form of debt relief can remove the need to pay back any money on your end. However, there is a large downside to taking this action. Bankruptcy stays on your credit record for up to ten years, lowering your score and raising flag with potential lenders. A bankruptcy mark can make it nearly impossible to open new lines of credit or rent an apartment. In some cases, Bankruptcy can prevent you from getting a job. For these reasons, many people look at bankruptcy as a last ditch effort to escape debt.
The act of paying of many or all of your debts with one form of payment is known as debt consolidation. While other professional debt solutions deal with the debt directly, this form lets you handle it yourself with borrowed funds. To simplify, you’re replacing multiple debts with one debt. This can be beneficial if you’re looking to reorganize your debts instead of have someone else handle them. This can also benefit your credit record should you steadily pay down your new consolidation debt. The only detriment to debt consolidation is that you need to have the proper credit to qualify.
Credit counseling can help to give you more information about your debts. With counseling, you’re paired with a counselor who can analyze your debt and direct you on how to help yourself out of it. The main benefit credit counseling has over other professional debt solutions is that it is free. On the other hand, a credit counselor cannot lower your debts or keep you on track to eliminate your debts. It would require a large amount of discipline to put the information you learn to good use.
One of the more accessible professional debt solutions, debt settlement doesn’t require great credit or a large sum of money to get started. These factors make debt settlement a viable solution to a vast majority of people who may not qualify for consolidation loans or bankruptcy. Debt settlement has the ability to lessen the principal amount of debt before paying it all off. This can be achieved individually or through a debt settlement company. Debt settlement companies have pre established relationships with credit providers which may work to your advantage during negotiations.
As with any of the professional debt solutions listed, make sure to do a proper amount of research before you commit.