The current state of the economy has found many drowning in a pool of credit debt. There are several credit debit relief options to help you get back on your feet.
Significance
It is important to know about the different types of credit debt relief programs to decide on the one that will help best solve your particular situation.
Types
Credit counseling aims to teach you how to manage your finances by giving you different options and tactics to help prevent overspending. A credit consolidation loan firm will essentially agree to take on the total debt owed while you pay the company a monthly fee. A debt settlement is a program where a firm will negotiate with your creditors on your behalf to obtain a reduction in the total amount owed; typically, the debt is reduced by 50 percent.
Considerations
Choose the best credit debt relief program that best suits your situation by doing research on the specific companies offering them. Different companies have lower monthly interest rates, if you choose a consolidation loan. Make sure the company is reputable. Research them through the Better Business Bureau for customer complaints and positive feedback.
Warning
Although filing for bankruptcy will completely wipe away your credit debt and give you a clean slate, never choose a bankruptcy as the first solution in debt relief. It should only be considered after you have researched several different options, as it will reduce your credit score and remain on your credit report for 7 to 10 years.
Benefits
When adhered to, credit debt relief programs will help you get back on your feet and manage your money and credit cards effectively, without having to choose bankruptcy as an option.
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