Debt Relief Options

There are many debt relief options which have been around for years, each with applications that will provide optimal results under specific circumstances. Determining the solution that will provide the best outcome for your specific debt relief situation should not be left to chance. The team at Debt Settlement Law Office will work with you to determine the right debt relief option for your situation and then use all of our resources to make sure you get the best result possible. A brief definition of each option can be found below.

Debt Consolidation – This is process where a consumer engages an organization to replace multiple lines of consumer debt with a single debt instrument. Monthly payments are directed toward accounts with the highest interest rates to pay them off first, allowing the borrower to pay increasing sums toward outstanding balances over the life of the consolidation. When consolidations first became popular, the multiple lines were replaced with another unsecured debt instrument. The biggest risk in debt consolidations today is that, due to lenders’ restriction on credit in general, most consolidations are collateralized against equity in the borrower’s home which introduces the possibility of foreclosure if payments in the consolidation don’t go as planned. Principle reductions are not negotiable in debt consolidations.

Debt Counseling – The term debt counseling is now a “catch-all” phrase for companies operating in any activity that may be considered to be a debt relief option. Many of these activities are considered to be outside the true definition of the service. In its truest form, debt counseling is offered by a non-profit organization which negotiates lower interest rates on credit card accounts. Payments are made to the counseling firm and then forwarded from there to creditors. Like debt consolidation, principle reductions are not negotiable in a debt counseling arrangement.

Bankruptcy – This is now widely considered a last resort option for consumers due to the onerous, restrictive, and invasive nature of bankruptcy laws since they were overhauled in October of 2005. Means testing, which is now required in bankruptcy filings, normally pushes the filers toward chapter 13 filings which carry far fewer benefits than the dismissals of debt which were the norm in chapter 7 filings. The public recording and the ten years that a bankruptcy stays on credit reports are additional disadvantages.

Debt Settlement – The newest and most aggressive form of debt relief, the process provides both immediate and long term benefits to borrowers with unworkable levels of consumer debt. Debts that can be settled include credit cards, medical bills, department store cards, signature loans, unsecured lines of credit, and revolving debt. Participants in debt settlements normally see an immediate reduction in monthly payments of 50%. Negotiated reductions in principle owed normally range from 40 to 60%. Complete payoff of the reduced principle balances takes from 18 to 48 months.

The team at Debt Settlement USA has helped hundreds of clients navigate through all the of debt relief options to find the best solution for their personal situation. Call Debt Settlement Law Office now at (800) 466-1845 to speak with a specialist or apply on-line. Take back control of your life today.

Bankruptcy may remain on your credit report for up to 10 years. With debt settlement law office bankruptcy can be avoided and your debt is reduced. Best of all, once your crediors accept our settlements, the amount will be as payment in full, making you debt free without having to suffer the longer-term financial, emotional, and social impacts of a bankruptcy.

With debt settlement law office bankruptcy can be avoided and your debt is reduced.