Debt Relief Options – Does Debt Consolidation Or A Debt Relief Program Make Sense For Me?

If you are struggling with debts then there is help to get you back on your feet again

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The two most successful debt management plans are debt relief and debt consolidation. They both have distinct advantages and you should be aware of each of them, before deciding to join a program.

Debt Consolidation is when you get a loan from a consolidation company to cover all your existing debts. You can consolidate all your payments into one monthly payment as well as significantly reduce the interest rates you were paying.

The loans can help people avoid bankruptcy by giving them affordable monthly payments and by getting interest rates under control. It's also much easier for people to manage with just the one payment and no more chasing from creditors.

However, there are some disadvantages. Firstly you still have the same amount of debt to pay off, in fact more, because a consolidation company will charge fees and the repayment period can be very lengthy so you will continue to be in debt for a long period of time.

Also, a big problem is that the payment to your creditors comes from a third party, the consolidation company, which is a third party and can have a bad effect of your credit.

The second plan is debt relief which I personally recommend to my clients. This involves a relief company actually going to the creditors and negotiating a discount on your debt.

It's a straight discount, and we have seen some people reduce their debts by up to 80%. You no longer have to pay crippling interest rates and the repayment schedule is significantly reduced. Of course the level of reduction depends on personal circumstance, but you can get out of debt extremely quickly with this method.

It works because companies with skill and experience in this area can make creditors understand that the best way to get a maximum return on the money they are owed is to negotiate.

However, it is important if you choose this method to only work with the best and most reputable debt relief companies because only they will be able to secure the best deals and give you the proper support throughout the repayment process.

Debt Relief Options Does Debt Consolidation Or A Debt Relief Program Make Sense For Me?

By: smith archer

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