Eliminate Credit Card Debt Without Bankruptcy - The Best Way To get out of debt fast

Eliminate Credit Card Debt Without Bankruptcy - The Best Way To get out of debt fast

There are many options to consider when searching for help with debt problems and how to eliminate credit card debt without bankruptcy. The first step to take on the road to debt relief is to explore and understand the different types of debt relief that are available. The variety of solutions out there can be confusing. Educating yourself about these different options is an excellent place to begin.

Once you have learned a bit about the different debt solutions available, then you will be in a good position to make the best decision about the debt relief option that will work best in your situation.

Of the many different debt relief options available, the two most often used are credit counseling and debt settlement. There is bankruptcy but this is a last resort.

Credit counseling, or debt management is one option. Credit counseling uses a method of negotiation with creditors and debt consolidation. What this means is that instead of paying several different small payments to a variety of creditors, usually at high interest rates, one monthly payment is made to a credit agency. The agency will then pay each of the creditors.

There are a few benefits to this method are the reduced fees and interest rates, plus the simplicity of the one payment. Another benefit is that of all options, this one will harm your credit the least. One potential drawback is that original debt is paid back in full, so that one payment will likely be a significant size. The other is that this option will take some time, on average about three to five years.

Another option is debt settlement to eliminate credit card debt without bankruptcy. Debt settlement, also called debt arbitration is a more aggressive option in which settlements are negotiated for the debtor to pay just a portion of the original debt. The settlement amount is usually much less than the principal. The money will be collected by the debt settlement company and then paid to the creditors. The most obvious benefit is the savings to the consumer. This is a quicker route to becoming debt free than credit counseling.

There are many different types of debt and there are many different solutions. One size does not fit all when it comes to debt settlement. With education and information you can make the best possible decision for dealing with your debt. Debt Settlement and Credit Counseling are two possible solutions that could be right for you to help you to eliminate credit card debt without bankruptcy.

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