How Do You Spell Debt Relief?
Of all the problems possible in a marriage, finances cause the most marital discord. Many singles consider finances to be their most worrisome issue. Many times this is due to a heavy debt burden. Several options exist to help people get debt relief from their unsecured debts. (Unsecured debt is not linked with a physical asset. Therefore, credit cards and medical bills are unsecured debts; a car loan or a mortgage are secured debts.)
One option for debt relief is bankruptcy. While unsecured debts are indeed discharged, the long-lasting black mark on your credit report (up to ten years) makes bankruptcy less than ideal as a form of debt relief. Further, changing bankruptcy laws will make it more difficult to file. Bankruptcy should only be a last resort. It is not a quick fix.
Another option is debt consolidation. Debt consolidation combines your existing loans into one loan. While this does away with late fees and over-the-limit fees, very little is done to reduce the amount of debt or to renegotiate interest rates. Further, this uses something as collateral, such as your house. If you still have trouble paying, you could lose your house to foreclosure.
A third option of debt relief is debt settlement. The debt settlement company negotiates with credit card companies to agree to settle for a lesser amount owed, often pennies on the dollar, of both the interest and the principle. A debt settlement company also acts as the middleman between the debtor and the credit card companies, eliminating phone calls that border on harassment. A downside to debt settlement is that many debt settlement companies advise you to stop paying your monthly bills altogether in order to force credit card companies into settlement. While this may work for some credit cards, others may be just as likely to take you to court for non-payment, and debt settlement companies take no responsibility for such action.
A fourth option for debt relief is through credit counseling services. This is similar to debt consolidation in that you pay only one bill to the counseling service. They in turn take over all your debt payments. The benefit of this is that any communication with the creditors is handled by the counseling service. The downside is that credit counseling services work primarily for the credit card companies. While they may work for a reduction of interest, they probably won't work for a reduction of principle.
No matter which option you choose for debt relief, all are better than doing nothing and falling further and further behind. Check out all your options before making a decision.
Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt consolidation, credit counseling, repair and free debt relief information that you can research in your pajamas on his website.
Latest News
Group advocates tax increases and non-user fees for sewer debt relief The Birmingham News - al.com, AL - At a morning press conference, the group put forward "the people's plan," an 11-point proposal for dealing with the debt. The activists, including a ... |
Staying On Track with Your Debt Relief Plan 3x24 - Your Newspaper and News Magazine, Germany - All these things, however, pale in comparison with the importance of sticking to and staying focused on your debt relief plan. Sticking with a debt relief ... Settling Credit Card Debt: Choosing the Right Words 4 Simple Steps To Getting Rid Of Credit Card Debt |
NCR deal brings relief for over-indebted consumers Personal Finance, South Africa - By Neesa Moodley-isaacs As of next month, if you are undergoing debt counselling you will no longer have to pay the costs associated with the repayment of ... |
Fitch Rates Marble Falls, Texas' COs 'A-' MarketWatch - Both direct and overall debt levels have climbed with recent debt offerings and now are above average. Property taxpayers receive some relief from the fact ... |
All you need to know about online bankruptcy Thrifty Scot (press release), UK - A recent report confirmed that as of next year a new form of filing for bankruptcy online would be introduced, and this will be known as a Debt Relief Order ... |
It's unfair to give lawyers debt relief Chicago Daily Herald, IL - 22), comments that they should not be consigned to lives of crippling debt for that choice. If they entered private practice, they would still have a debt. ... |
Go Debt Relief, Now a Member Lexington Chamber of Commerce PR.com (press release), NY - A slumping economy has more and more consumers looking for help with their credit card debt. Go Debt Relief is assisting people struggling with their high ... |
Use Credit Card Relief to Stay out of Bankruptcy 3x24 - Your Newspaper and News Magazine, Germany - For credit card debt relief, the first things you should try are very simple and easy to do yourself. Firstly, set a budget for yourself, and track how much ... |
Servicemembers Employ Recession Buffers, Still Seek Help Kansas City infoZine, MO - They incur debt quickly because we all know how easy it is to get credit." Financial readiness programs are widespread to educate military members about ... |
Mozambique: Mozambican government negotiates foreign debt relief ... Macauhub, Macau - Maputo, Mozambique, 19 Aug – The Mozambican government is negotiating with Libya and Bulgaria the relief of its debt to those non Paris Club countries ... |
Resources
-
Sorry there are no resources available at this time