Debt Relief Options - Consolidation Or Negotiation - Which Will Reduce My Debt Faster?

Debt Relief Options - Consolidation Or Negotiation - Which Will Reduce My Debt Faster

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Many individuals these days are in search of such ways and methods that will lead them towards the way of getting out from the pool of debts. Getting laid off or cutting of salary makes the person compelled to use a credit card. No doubt that the invention of plastic money bought many easiness and feasibility in person life but at the same time they really have to pay a lot when it comes to the matter of paying it back. Late fee charges and other hidden charges make the amount double from original and that is the reason why people are in search of such ways that will help them out in getting rid form the burden of unsecured debts.

Debt consolidation or debt negotiations are two available ways for the people, if they need debt assistance. When the person realizes that his financial condition is not stable enough and the amount of monthly bill is going out of his pocket then at this stage he should opt for any one of these methods.

Debt consolidation: It is basically a method in which the balances of all credit cards get transferred in to one single credit card via balance transfer. When a person goes for debt Consolidation Company, he/she offers less overall monthly payment based on lower amount of markup rate. The payments schedule is less than what actually the credit card companies offering the person. One of the biggest advantage of debt consolidation is that person will not going to receive any more harassing phone calls or the constant knock of recovery agents.

The draw back of debt consolidation is that person has to cancel all the credit cards, and apart from this the repayment schedule may take the time frame of 3 to 5 years which is long and in between this person has to pay the installment no matter how financial crises he will be facing. Debt consolidation programs are only beneficial for person only when the interest rate is high or credit cards bill that person is not able to manage.

Debt Negotiations: This is referred as debt settlement; the process is done by trained professional debt settlement companies. If the problem of debts is still there then after debt consolidation, debt negotiation is considered to be the next option. With the help of debt settlement person is able to get 40 % to 50% elimination easily.

Draw back of debt negotiations is that it creates direct negative impact on the credit ranking of person.

No proper way is there that will help out the person in coming out from the pool of debts but still debt settlement is considered much more reliable and authentic way.

Debt settlement is the best alternative to bankruptcy and usually makes financial sense for consumers with over $10k in unsecured debt. Consumers can expect to eliminate 50% of their unsecured debt on average. To find legitimate debt settlement companies in your state and get free debt advice then check out the following link.

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