4 Need-to-Know Debt Relief Solution Options

There are a number of debt relief solution options for many people around the country who are suffering in serious debt. If you are one of those people who have no idea about how they can pull themselves out of the massive hole of debt they have dug themselves into, don’t worry!

You can take advantage of a good debt relief program to help you find your way clear of debt. Here is a brief description of different debt relief solution options so you can choose the right one for you and your situation.

Credit Counseling

debt relief solutionThere are many debt counselors that offer services in counseling on how to get out of debt for those people who are most seriously in debt. Many counseling agencies contract debt counselors to give help to people who need to know how they can get out from under their burden of debt.

These counselors give tips on the best way to avoid getting in debt, how to avoid a number of pitfalls that lead to debt, and some of the best places to find instructional material on learning about debt. Debt counselors can also recommend excellent classes that can help educate people in handling their finances responsibly to avoid debt.

Consolidation Loans

For many people who battle with debt, another excellent debt relief solution is consolidation loans. For those with many loans that they are paying off every month, taking out a large loan to cover those smaller loans is a good way to make sure that they can handle all the debt easily.

Paying off a single loan in large amounts every month is often easier for people than paying off a number of smaller debts that tend to slip through the cracks. The downside to debt consolidation is that it often is harmful for your credit.

Debt Settlement

Debt settlement or debt negotiation is the best debt relief solution option for those who are too far in debt to ever be able to pay off their debts. Those who are able to meet their monthly debt payments shouldn’t even consider debt settlement.

An agency negotiates with the people you owe money to, and they settle on a sum that is lower than your original debt. The amount needs to be paid out in a single lump sum, but you can end up saving a good deal of money by using debt settlement.

This too affects your credit score, but you may find that the amount of money that you have saved in this way is worth it.

File for Bankruptcy

Bankruptcy is another solution to your debt problems, but it is a drastic measure that should be your last recourse. Chapter 7 Bankruptcy means that you are forced to liquefy all of your assets and liabilities, and a Chapter 13 bankruptcy means that you have to pay your debt over a period of years.

Make sure that you have a certified bankruptcy attorney with you to give counsel as you file for bankruptcy.

Do Nothing

What if you do nothing? If you don’t do anything, you can be sure that your creditors will simply repossess everything they can get their hands on. Usually creditors will wait a few months before repossessing everything, but they will send aggressive third-party debt collectors to do the actually repossession if you don’t manage to pay.

Now that you know your debt relief solution options just check your financial situation, by yourself or get help from a pro. If self-help is not your option simply pick one solution that helps you get out of debt.

4 Need-to-Know Debt Relief Solution Options was last modified: May 13th, 2014 by Paul Sarwana