subject: Debt Relief Services – Are You Behind Your Payments Or Missing Payments Look For Debt Relief [print this page] Debt Relief Services Are You Behind Your Payments Or Missing Payments Look For Debt Relief
If you are burdened with huge debts all your resources will be spent in just meeting the monthly loan instalment payments. Chances are that you will be behind on your payments or missing the installment payments. Being behind on loan instalment payments or missing payments has an adverse effect on your credit scores. At the same time if you have huge unsecured loans you will be paying exorbitant amounts in interest. This is the reason that even if you somehow juggle and manage to keep all the loans afloat, you will never be able to get out of debt. Your credit scores will continue to be low and you will have to klive with the consequenses of low credit scores.
This is the reason that if you have accumulated large debt and are unable to make the required payments every month, you should look for debt relief options. If you have a moderate debt you can choose either debt consolidation or loan conversion. Under debt consolidation several high interest loans are paid off with a single low interest one. This not only reduces the amount of money you pay as interest every month, it also makes the payments more manageable. Under loan conversion, unsecured loans are converted into secured ones by offering some collateral against them. This will reduce the rate of interest drastically and hence reduce the burden of debt considerably. Moreover these debt relief measures have very less effect on the credit scores.
If however your unsecured debt is more than $ 10,000 you should opt for debt settlement. Under this procedure you can approach your creditors and persuade them to reduce your loan amount payable. If you negotiate well this amount can be reduced to almost half or the original amount payable. This settlement amount can then be paid off as a lump sum or in equated monthly installments. Even if you decide to make the payments in instalments, it will take a maximum of 48 months to become debt free. Once you have become debt free you can devote time, energy and resources to rebuild your credit scores.
