subject: Credit Card Debt Consolidation Vs Debt Negotiation - What Makes Sense For You [print this page] Credit Card Debt Consolidation Vs Debt Negotiation - What Makes Sense For You
Due to high interest rates on repayments, it is becoming very difficult to get rid of credit card debts. When no plan works out then bankruptcy is the only possible solution left. But bankruptcy is a bad option because you will suffer a lot even if you succeed in filing for it. So, you should try to avoid filing bankruptcy. Debt negotiation is always the best solution to get rid of loans in less time. If you are able to get a loan settlement then it is easy to pay the left over amount and regain your financial freedom. There are few drawbacks of debt negotiation. If you do a settlement then this will be written on your credit report which is not good. You can also request the collectors for not giving negative remarks on your credit report. For debt settlement, you don't have to take any other loan. So, if you don't have any assets for taking a secured loan then debt negotiation is your best possible option. Through debt settlement, you can eliminate your loans up to 50% or more.
Credit card debt consolidation process requires taking secured loan to get rid of an unsecured loan of the credit card. Secured loan can be taken in the shape of home equity loan. Organizations that offer consolidation solutions charge less interest rate on the repayment of the loan and they offer you small payments. So, a credit card holder can easily get rid of the secured loan easily. The Consolidation procedure can take much more time. Many risks are also attached to debt consolidation. Taking another loan can increase your burden and can make your financial state worse. So before trying this option, you should carefully study your resources. One positive aspect of debt consolidation is that when you put your property in danger to take a secured loan then you become more responsible. You will try to regain your property as early as possible. The person who has paid the money through debt consolidation will be financially strong because he would have learned a long suffering lesson.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.
