If you are having a difficult time with your debts then there are a number of potential options that are available to you.
The two most successful debt management plans are debt relief and debt consolidation. They both have distinct advantages and you should be aware of each of them, before deciding to join a program.
When you enter into a debt consolidation program you use a third party loan company to effectively lend you the money you need to cover your total loans. This allows you to pay off them all and change to paying just one every month and reducing your interest rates.
The loans can help people avoid bankruptcy by giving them affordable monthly payments and by getting interest rates under control. It's also much easier for people to manage with just the one payment and no more chasing from creditors.
Now for the disadvantages. The individual must sign up to the new program and repayment plan and if it is not kept to then everything is lost. Also the actual amount of debt stays the same, or even increases with the consolidators fees included and the repayments process continues over a long period of time.
Also, a big problem is that the payment to your creditors comes from a third party, the consolidation company, which is a third party and can have a bad effect of your credit.
The second plan is debt relief which I personally recommend to my clients. This involves a relief company actually going to the creditors and negotiating a discount on your debt.
The level of reduction that is negotiated is just that a reduction. The debt is significantly reduced, in some cases by up to 80% and of course those crippling interest rates are also wiped out. Everything or course depends on the individual case, but due to the nature of this method people can get rid of their debts very quickly.
It works because companies with skill and experience in this area can make creditors understand that the best way to get a maximum return on the money they are owed is to negotiate.
Having said that, it is vitally important to choose the highest quality debt relief companies to help you clear your debts. Only then will you be able to secure the highest discounts that are possible.
The two most successful debt management plans are debt relief and debt consolidation. They both have distinct advantages and you should be aware of each of them, before deciding to join a program.
When you enter into a debt consolidation program you use a third party loan company to effectively lend you the money you need to cover your total loans. This allows you to pay off them all and change to paying just one every month and reducing your interest rates.
The loans can help people avoid bankruptcy by giving them affordable monthly payments and by getting interest rates under control. It's also much easier for people to manage with just the one payment and no more chasing from creditors.
Now for the disadvantages. The individual must sign up to the new program and repayment plan and if it is not kept to then everything is lost. Also the actual amount of debt stays the same, or even increases with the consolidators fees included and the repayments process continues over a long period of time.
Also, a big problem is that the payment to your creditors comes from a third party, the consolidation company, which is a third party and can have a bad effect of your credit.
The second plan is debt relief which I personally recommend to my clients. This involves a relief company actually going to the creditors and negotiating a discount on your debt.
The level of reduction that is negotiated is just that a reduction. The debt is significantly reduced, in some cases by up to 80% and of course those crippling interest rates are also wiped out. Everything or course depends on the individual case, but due to the nature of this method people can get rid of their debts very quickly.
It works because companies with skill and experience in this area can make creditors understand that the best way to get a maximum return on the money they are owed is to negotiate.
Having said that, it is vitally important to choose the highest quality debt relief companies to help you clear your debts. Only then will you be able to secure the highest discounts that are possible.
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