There are other debt relief options available which you can explore. Let’s identify them and analyze them one by one in simple terms.
At the bottom of this article, find out why debt settlement is still the best option for you.
Your First Option: Debt Consolidation
Your first option for debt relief is to obtain a Debt Consolidation Loan. Remember that getting a debt consolidation loan is not equivalent to reducing your debt because you just obtain a bigger loan to hopefully pay all your current debt. This means, you will end up having a bigger debt than you already have plus worrying about losing your home or expensive jewelries because these assets will now serve as your collateral to your consolidation loan.
Your Second Option: Credit Counseling
Credit counseling, on the other hand, is getting the service of a third party to negotiate on your behalf in reducing the interest rate on your credit. Note that your principal debt is never reduced; only the interest rate is being negotiated.
Filing for Bankruptcy
Bankruptcy is the last resort for some people in a bad debt situation. It wipes out most unsecured debt usually within four months. It can be a total debt relief but, people who file for bankruptcy must realize that bankruptcy proceedings have to be filed in court. Note that a bankruptcy report can remain in your credit score for up to 10 years.
Or, Enroll in a Debt Settlement Program
Debt settlement is the best and most widely acceptable debt relief option. Although it is limited to unsecured debts but it does not require valuable assets as collateral and it is a fast–as short as 2 to 3 years to complete and cost-effective solution.
Why Debt Settlement Is The Best Option?