With the many ways there are to get out of debt it can sometimes be hard to choose which way is right for you. Whichever way you choose you’re looking to do the same thing you’re trying to lower your monthly credit card payments, you’re trying to reduce your interest rates if possible, you’re trying to waive late fees and other fees the banks try to throw on you, you’d love to eliminate the collection calls early in the morning and late at night, you want to avoid bankruptcy at all costs, and most importantly you want to be debt free.
To start with let’s talk about debt consolidation. Debt consolidation, you get all your bills and consolidate them into one single payment. You do not have to get a debt consolidation loan to use this method. In many cases you are able to lower your monthly payments, reduce your interest rates, and get rid of the annoying that collection calls.
You also have Christian debt consolidation which is similar to debt consolidation their also incorporates Christian values to help you pay off your debt.
Next, let’s talk about debt settlement. This process allows you to negotiate with your creditors and reduce your outstanding balances by up to 40 to 60%. The goal is to have you debt free in less than 36 months. This is two years sooner than a Chapter 13 bankruptcy. Debt settlement is an alternative to bankruptcy. The effects to your credit report and credit score are similar except that bankruptcy is in the public record whereas debt settlement is not.
Finally you have debt management. This involves getting debt assistance from a credit counseling company through a payment plan with your creditors that can reduce your interest rates and reduce or possibly waive some late fees. This is called a debt management plan or DMP.
So which one should you go with? Again since we are talking several thousand dollars worth of debt it is not an easy decision to make. Whichever method you choose can affect your financial life for several years to come in good ways and in bad.
I’ve recently partnered with debt consolidation care, an online get out of debt community that offers a free debt counseling session to analyze your financial problems and see which method would work best for your situation. They have helped over 169,000 people pay off their debt. You can talk to them for free and get a customized solution for you. They can help you with these debt cures.
Talk to you soon,
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