subject: Legitimate Options to Eliminate Debt in This Market - Proven Debt Relief Options [print this page] Legitimate Options to Eliminate Debt in This Market - Proven Debt Relief Options
There are many legitimate options to eliminate debt in this market. The most commonly used top three legitimate options to eliminate debt in this market are bankruptcy, debt settlement and debt consolidation. These three methods to gain relief from huge amounts of debts have been really effective in different case scenarios. The effectiveness of each method is different in different ways. The selection of one of these methods depends on your current financial situation.
One of the three legitimate options to eliminate debt in this market is debt settlement. According to this method the debtors and the creditors sit together and bargain on the amount of loan that needs to be paid back. This bargained amount is 60 to 70% lower than the original amount of loan. The debtors can even bargain for lower rate of interest an more time period to pay back the loan. This option is currently the most popular option for getting relief from up to $10000 amount of loan. The benefit of this option to the creditor is that he gets some part of his money back the benefits that debtors face are that they get relief from the loan amount.
The second option we consider as loan elimination method is bankruptcy. According to this method the debtor files a law suit claiming insolvency and appealing in the court of law that he cannot pay back his loan. This way the debtor gets complete relief from huge amounts of loans without paying a penny to the creditor. Although this method seems to give the best results but the down side of this method is very deep. Firstly due to using this method people fail to secure loans in future and when a person files bankruptcy, all his property or tangible assets are sold in order to pay back the creditor.
Last but not the least option we are going to consider is debt consolidation. In this method all the loans the debtor has taken are considered as one and a single interest rate is figured out for the total loan amount. The new interest rate is lower than the previous interest rate. The new interest rate is 75% of the original interest rate. By using this method debtor make one single payment every month and they get rid of making multiple payments.
While determining which method will be more suitable for you, you have to consider your4 current financial position.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
