If you are the same as the majority of people in America, you are trying hard to not incur any new bills and are paying down the old ones. But, a few people are overwhelmed by major credit card bills, doctor bills and other unsecured debt. A lot of these folks are thinking about declaring bankruptcy, except they may not really know the actual impact that could have in their life and their employment.
This economic crisis has left families with losses. Maybe the family’s second income was lost, or now you’re responsible for an out of work family member. Maybe unemployment checks hardly cover food and utilities. Or have you lost all and joined the millions of American’s who know they are homeless while their home sits empty and vacant with a for sale sign on it and the debt collectors use up your cell phone minutes. What are your Debt consolidation alternatives?
Most American’s believe Bankruptcy is debt settlement. It is not! It is a “final” alternative too often mistakenly sold to American’s as the only solution. Certainly Chapter 11 or Chapter 13 can reduce debt. Even eliminate it. It can also leave you unable to borrow, or obtain a mortgage for seven years or longer. Bankruptcy is a last resort.
Being debt free is a goal that many of us can only hope for, but with a reputable debt settlement company, being debt free can become a reality. This method of debt resolution allows you to engage in a two way negotiation with creditors and collection agencies to settle your debts not for what THEY want, but for as much as YOU can afford to pay. Choosing this option will avoid bankruptcy and will maintain your credit in good standing in the long run.
There are still other benefits to debt settlement. This method allows you to avoid unfair collection practices and harassing phone calls by collection agents, attorneys and debt collectors if you negotiate a settlement. Once you negotiate a settlement, those individuals may no longer call you, which means that you will no longer feel a need to avoid the telephone or feel stress every time you see a number on caller ID that you do not recognize.
And, you will eliminate the credit card companies’ outrageous late fees. As many of us have learned the hard way, one of the ways that credit card companies drive up your debt amount is by charging expensive late fees. A debt settlement erases and stops the late fees so that you can focus on the business of paying off your credit card debt. And, as mentioned above, you will avoid litigation and lawsuits by engaging in debt settlement.
Many reputable debt settlement companies will work closely with you to determine what your needs are. Once that has been ascertained, your debt settlement company will be a tough advocate and negotiator for you against the lender to reduce the debt amount. Options presented to you may include payment of a lump sum, or payment of monthly payments. Even if you have no money saved, legitimate debt settlement companies will collect your money for you and set up an account that will be used to pay your debt.
Debt settlement is a win WIN! It not only reduces your overall debt (even sometimes by more than half), it reduces the monthly amount you pay out, and within but a few months of using a Credit Counseling Agency you probably will see an increase in your overall credit score. Credit Counseling Agencies can be found on the Internet, at your local Yellow Pages, or by contacting local churches, synagogues, mosques, or social service agencies. In a time of losses it is time to win.
