subject: Chapter 13 Vs Debt Consolidation – Looking For A Debt Relief Program? [print this page] Chapter 13 Vs Debt Consolidation Looking For A Debt Relief Program?
Many individuals that find themselves in stressful debt situations feel that filing for Chapter 13 bankruptcy is their only hope for a brand new start.
In truth, bankruptcy can leave a mark on your financial record for many years to come, affecting your ability to purchase property, apply for rentals, buy new automobiles or even secure employment with certain organizations.
Aurora Lillo Editor of the "Best Debt Consolidation Companies" website -- http://www.BestDebtConsolidationCompanies.net -- pointed out;
"...Debt Consolidation - on the other hand - allows you to stop your negative financial slide and then to begin rebuilding your score at a fast rate of speed. Streamlining your debt payments has 3 distinct advantages over filing for Chapter 13. First, it allows you to negotiate your settlements with creditors and to close your accounts as paid. Second, it allows you to make steady improvements to your credit score. Third, it allows you to avoid the stigma of bankruptcy that can follow you for a long time..."
Negotiate Settlements
When you are approved for a debt consolidation loan, you have essentially secured a large amount of money with which to negotiate settlements with each of your creditors. Unlike bankruptcy that simply forfeits all of your accounts forever, consolidation allows you to work with your creditors (either directly or via representatives from your debt-relief program) to arrive at a lump sum payment that closes your account as 'paid'. Lenders are often willing to reduce the total amount of money you owe by up to 50% in order to have the payment immediately.
Improve Score
While debt consolidation programs do incur a slight drop in your credit score initially, it is nothing like the negative effect that filing for chapter 13 bankruptcy would have. Since you will be paying off your streamlined loan via monthly payments made directly to your debt-relief agency, you will have a chance to recover your score in no time and even to improve it over the course of a number of months. Every time you make one of your monthly loan payments on time, the activity will be logged with reporting agencies as yet another positive mark of your fiscal responsibility. This is attractive to new lenders, and you can expect to have new credit line offers in a short period, unlike with bankruptcy, where lenders tend to avoid you like the plaque for many years.
Stay Stigma Free
"...One of the best perks of using a debt-relief program is that it allows you to keep Chapter 13 bankruptcy off your financial record. This makes you more attractive to future lenders and even employers..." added A. Lillo.
Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationCompanies.net
