subject: Debt Relief Solutions - When Do Debt Relief Programs Make Financial Sense? [print this page] Debt Relief Solutions - When Do Debt Relief Programs Make Financial Sense?
Debt relief solutions are on high demand and this has become possible because the new bankruptcy laws have made it difficult for the consumers to file for bankruptcy. This has forced many consumers to look for alternatives. The result was that the consumers inclined more towards settlement as a relief method. Other relief methods are also used. However, debt settlement outcasts others. But the question is, when does a relief program make financial sense? The answers to this question are summarized below.
Let us begin from a very odd end of bankruptcy. Bankruptcy states that a person needs to qualify in the means test. Means test is conducted on the basis of a predefine expenditure level. This is defined by the govt. This is the expenditure required to maintain a healthy lifestyle. If a person's level of income is greater than that predefined level, he or she cannot file for bankruptcy. This means that once a person is disqualified for bankruptcy, because his or her income level is above the level of expenditure defined by the govt., it is wise for the person to go foe alternate relief methods and this is when a relief program makes financial sense.
In general, it is more sensible to go for a debt settlement as a debt relief program if the debt amount is greater than $10,000. Below that level, it is wise to go for alternate relief options like that of debt consolidation and management. This is because, below that level, debt is still manageable and with a little modifications in the budget. It is better to do so because, this will avoid unnecessary wastage of time and money as well as save the precious credit score. However, if the financial condition is not good enough to pay the debt in full, it is better to go for relief programs.
Eventually, it can be said that if you have a constant flow of income, debt relief programs will make financial sense. This is because of the fact that with debt relief programs, the entire debt is not wiped out. Only some parts of the debt will be eliminated. This means that there needs to be some income source to cover that remaining payment. This will require a source of income. So, a debt settlement program makes sense only when there is some income. So, if you are planning to go for a relief program, you need to keep these things in mind.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.
