Too Much Debt? The Best Options For Consumer Debt Relief in 2010

Too Much Debt? The Best Options For Consumer Debt Relief in 2010

Are you down with too much of debt and looking for debt relief? If yes what are your chances of getting out of debt in 2010. I would say the new year has a lot of cheer to offer to you. Take advantage of the downturn in the economy and recession to your advantage.

You may think I am crazy. Though it sounds crazy yet it is true. You can take advantage of the recession and the stimulus money and get rid of your debt. Read on to know how. Let us commence by taking a look at the various options for debt relief available to you. Broadly speaking these options can be divided into three categories, Bankruptcy, Debt settlement, and Debt Consolidation. Each has its own nuances and plus and minus points.

Tracy has been having three Credit cards. She has about 2 to 3 thousand rupees of debt on each card. She pays an interest of 12.5%, 14% and 16% on each of these cards. She makes monthly payments on different days of the month. She is finding it very difficult to keep a track of her monthly payments.

Jim has a debt of more than $12,000. He does not have a regular source of income. The surmounting rates of interest have been killing him. Half of his debt consists of interest and late fees. He needs to get rid of his debt very soon.

Taking Tracy's case first if we analyze it we can see that she needs to consolidate her debt. Making three different payments itself is unmanageable. She needs to transfer her entire debt to the Credit card with 12.5% rate of interest. This will also cut down on her interest costs.

In the case of Jim he can either go in for a debt settlement or bankruptcy. If he goes in for a debt settlement he can get the entire debt knocked off in one go. Bankruptcy will involve a drop in his credit score and it will take him almost a decade to recover. Thus debt settlement is the best option in this case.

These are some takes on debt relief solutions. You decide what is best for you.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.

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