Debt Settlement, Credit Counseling, Or Bankruptcy - The Fastest Debt Relief Tactics For 2010
The three most effective liability elimination methods are debt settlement, credit counseling, or bankruptcy.
You have to make a wise decision before selecting any of these three options.
The decision whether to go for debt settlement, credit counseling, or bankruptcy depends on your current financial situation.
You consideration should not be how fast you can get out of liability issues, your consideration should be current and long-term benefits of selecting one of these methods.
First I am going to talk about liability settlement; liability settlement is a fast option for eliminating liability and solving liability issues.
In liability settlement the debtor and the creditor bargains for a discount in the amount of loan that needs to be paid back.
The negotiations take place and the liability amount is lowered by 60 to 70%.
This amount can be paid with extra repayment time period and low interest rates.
Making liability payment with the help of this option is very easy and this option is considered as the most effective ways of eliminating liability issues.
The second liability elimination method I am going to talk about is credit counseling.
In the option all the loans of the debtors are considered as one and a single interest rate is figured out.
This interest rate is 75% of the original interest rate.
The benefit of using this option is that the debtor does not have to make multiple payments each month and they make only one single payment each month.
This option is not considered as the fastest way of solving liability issues but is the most effective ways of solve debt issues.
The reason behind it being considered the most effective ways because the credit report of a debtor does not get adversely affected after using this option.
The last option is bankruptcy.
This is considered the fastest way of eliminating liability issues but is not considered as the most effective way.
In this option the debtor files a law suit claiming that he cannot make payments to the creditors thus has decided to file for insolvency.
The debtor gets complete relief from liability on his head in one goes but the after effects of this option are very worse.
A debtor's credit report is ruined by using this option as bankruptcy remains on the credit report for 10 or more years and creditors hesitate in giving loans to people with bad credit report or a credit report with bankruptcy stated on it.
You have to make a wise decision before selecting any of these three options.
The decision whether to go for debt settlement, credit counseling, or bankruptcy depends on your current financial situation.
You consideration should not be how fast you can get out of liability issues, your consideration should be current and long-term benefits of selecting one of these methods.
First I am going to talk about liability settlement; liability settlement is a fast option for eliminating liability and solving liability issues.
In liability settlement the debtor and the creditor bargains for a discount in the amount of loan that needs to be paid back.
The negotiations take place and the liability amount is lowered by 60 to 70%.
This amount can be paid with extra repayment time period and low interest rates.
Making liability payment with the help of this option is very easy and this option is considered as the most effective ways of eliminating liability issues.
The second liability elimination method I am going to talk about is credit counseling.
In the option all the loans of the debtors are considered as one and a single interest rate is figured out.
This interest rate is 75% of the original interest rate.
The benefit of using this option is that the debtor does not have to make multiple payments each month and they make only one single payment each month.
This option is not considered as the fastest way of solving liability issues but is the most effective ways of solve debt issues.
The reason behind it being considered the most effective ways because the credit report of a debtor does not get adversely affected after using this option.
The last option is bankruptcy.
This is considered the fastest way of eliminating liability issues but is not considered as the most effective way.
In this option the debtor files a law suit claiming that he cannot make payments to the creditors thus has decided to file for insolvency.
The debtor gets complete relief from liability on his head in one goes but the after effects of this option are very worse.
A debtor's credit report is ruined by using this option as bankruptcy remains on the credit report for 10 or more years and creditors hesitate in giving loans to people with bad credit report or a credit report with bankruptcy stated on it.