| When consumers get themselves into a substantial | | | | process, you will still get the constant calls from bill |
| debt situation, too many times it goes under | | | | collectors until you make enough payments to your |
| estimated. And by that I mean proactive steps aren't | | | | settlement company for them to pay off one of |
| taken to relieve the debt. According to a report by | | | | your creditors in full. Just imagine if you had 3 or 4 |
| the Federal Reserve on January 8th, 2007, consumer | | | | creditors... The other major disadvantage to |
| debt in the United States has hit almost $2.4 trillion. | | | | settlement is that it's another debt relief method that |
| For this reason, there are a handful of debt relief | | | | is harsh on your credit. |
| solutions out there that include bill consolidation, | | | | A bill consolidation loan can be an effective way to |
| settlement, bankruptcy, loans, and counseling. Some | | | | save some money on high interest rates. You can |
| of these solutions will make your debt go away | | | | transfer the balances on your unsecured bills to a low |
| faster than others, but the real question is, by what | | | | interest rate loan. Although you're not entirely solving |
| means? | | | | the problem of being in debt, you now only have one |
| Bankruptcy is a rough debt relief avenue. For most | | | | payment to make per month. This solution is the |
| people, your options are chapter 7 or 13. There really | | | | best alternative to bill consolidation. |
| isn't much hope for your credit and future home | | | | The most efficient way to pay off debt is by using |
| purchases with bankruptcy. In most cases, you're | | | | bill consolidation. A good consolidation company will |
| much better off finding a legitimate bill consolidation | | | | have established relationships with almost every |
| service to push all of your debts into one payment. | | | | creditor in the book. This usually means that before |
| In fact, recent bankruptcy laws actually require you | | | | you even call a bill consolidation company, lower |
| to enroll in an approved bill consolidation program for | | | | interest rates for your creditors have already been |
| at least 180 days in order to be eligible to file. This | | | | determined. Most of the time this results in a %30 - |
| option should be considered a last resort. | | | | %50 decrease in your monthly payments. Your credit |
| Another debt relief method is what's called debt | | | | score does get to stay in-tact. Also, most bill |
| settlement. This usually consists of negotiating terms | | | | consolidation companies do not check your credit |
| with your creditors such as actual debt amount and a | | | | score before working with you and your financial |
| pay-off time frame. The biggest drawback to | | | | situation. In short, bill consolidation can effectively pay |
| settlement as opposed to bill consolidation is that | | | | off debt in a short amount of time (2-5 years) |
| your settlement company will keep your monthly | | | | without the negative effects associated with |
| payments until enough funds have accumulated to | | | | settlement, loans, or bankruptcy. |
| completely pay off a single creditor. Throughout this | | | | |