subject: Debt Relief Programs - A Better Alternative to Filing Bankruptcy [print this page] Debt Relief Programs - A Better Alternative to Filing Bankruptcy
With more and more people finding it ever more difficult to pay back their debt and considering bankruptcy, we see the birth of a new solution, created for just such situations - debt relief programs. As we become unable to pay back our loans, mortgages and credit card fees, we can enlist the help of a debt negotiation company, whose goal is to negotiate a lower sum to be paid to the creditor, thus saving us, the customer, both time and money.
If you were to continue paying the minimum monthly payment, you may find that you would be in debt for up to the following thirty years, whereas with a good debt relief program the aim is to limit that period of time to a maximum of three years, usually even two, depending on your current income. Naturally a creditor would rather have you pay the monthly payment than settle for less, but if you get to a point where you simply cannot pay them back, the will accept such an offer from the debt negotiation company in order to cut their losses to a minimum.
Another issue is choosing the right company. You should not expect to be able to pay however little you desire, instead look for a company that can tell you up front what your situation is and how much you can expect to save. Run away from companies that claim to guarantee that you will save a certain specific amount - remember that this is a negotiation and that every situation is different, no one can make any guarantees. Look for debt negotiation companies that will sit down and analyze your family budget in order to create the best strategy for your needs and capabilities.
Debt relief programs are a great alternative to filing bankruptcy because it makes both the creditor and the customer happy - you are able to pay back at least part of your dept, whilst not entering a situation where you are unsure of your financial future. Also, if you are able to go through with the program, you will find that in three years you may be able to once again start taking out loans.
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.
