Are you presently drowning in debt? Every time a new bill arrives in the mail, every time the telephone rings and you fear it’s one of those creditors, it just feels like the universe is conspiring against you!
Being financially pressured is no joke. The stress that it brings further aggravates your already pinned-down situation. It’s time that you take a breather. Know and understand your debt relief options so you don’t stay in the pit hole forever.
If you’re thinking of filing for bankruptcy just to get it over, discard that thought for just a moment. Consider the fact that it can take you ten long years to actually get it over with! Only to discover that during and after this very long period in which you spend clearing off your credit report, getting loans of all types becomes a difficult, complicated endeavor. This process should be your last resort.
If your debt problems can still be amicably patched-up, then, you can opt for Debt Settlement solutions.
There are two ways to settle your credit card debt, one is through an unsecured debt settlement program and the other is through a Debt Management Plan (DMP). Both debt settlement solutions aim to reduce the principal amount owed or trim down repayments. A professional financial counselor will help you deal with creditors in order to settle your debt in a completely legal and logical manner.
Unsecured Debt Settlement Programs
Your financial counselor will negotiate with your creditors to reduce your principal by up to 50%. Repayments become more affordable in normally a payback period of 12 to 36 months. And it is likely that you can extend the repayment term.
Beware of unsecured debt settlement programs that ask for management charges in advance. Fees are taken from each monthly payment and not upfront.
Don’t rush and jump into a debt settlement provider’s office without performing your own research on the company first. Ask around and look for well-established, highly recommended financial consultants. Ensure they have several positive recommendations from clients. You can do this by searching online or by asking your acquaintances.
Debt Management Plans (DMP)
A Debt Management Plan also makes it possible for you to get rid of your credit card debt. Again, a professional advisor will act as an intermediary to negotiate with your creditors. An affordable monthly repayment will be your option to pay off the debt.
It is different from an unsecured debt settlement program because in a DMP, the principal amount owed remains the same.
In a DMP, you are protected from being further harassed by creditors since all communications will be channeled through an appointed intermediary.
Debt Consolidation
To consolidate your debts into one loan account or program is another debt relief option. You will be able to pay off all your other debts and under one interest rate, make monthly payments to the remaining, single loan.
Some consolidation programs give lower interest rates as an incentive so be on the lookout for companies that offer such if you are interested in debt consolidation.
Be advised that when you consolidate your debts, it may take you a longer time to pay it off since the term given is usually longer and you may end up paying more in interest. Seek financial advice to help decide whether or not this is the right option for you.
Credit Restoration
If you find your credit score too low to secure a stable credit position, credit restoration is a likely option. A positive credit history is built upon having at least three active aged tradelines. Credit repair solutions combined with the addition of positive tradelines result in successful credit restoration.
To help and guide you in your credit restoration efforts, ask for the expertise of financial consultants. They will be most willing to relieve you from the stress of having poor or bad credit.
Help them understand your situation. They will help you develop strategies guaranteed to alleviate your credit problems and work your way towards achieving your well-deserved financial freedom.
Bankruptcy
As previously mentioned, bankruptcy should be your last resort. You only file for bankruptcy if and only if your debts are in no other way manageable. The stigma that comes after bankruptcy is not an easy way out – 10 years of tainted credit is a long and rough wait.
There are two types of personal bankruptcy, namely, Chapter 7 and Chapter 13.
The main difference between Chapter 7 and Chapter 13 is that Chapter 13 allows you to keep your house, car and any other assets as long as you pay-off all your debt within a three to five year time frame. When all have been settled, you will be freed from the bonds of bankruptcy.
Chapter 7, on the other hand, is the liquidation of all your assets with the proceeds turned over to your creditors to pay-off your debt. But, it’s only after 6 years from the date your creditors receive the payment that you’ll be discharged from bankruptcy.
Whatever financial situation you are in now, an expert debt counselor can help you decide which among the debt relief options is most suitable for you. Contact Graceful Credit Solutions today at 1-800-733-6170 to seek professional advice because not only are you putting an end to your present dilemma, you are also shaping the face of your financial future.
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