What would you do if a debt collector called you today and insisted that you either pay off what you owed or you’d be sued and taken to court? While that’s not a very pleasant picture it’s something that could actually occur if you’re deeply in debt. In fact, if you have a lot of credit card debt, it’s kind of like a ticking time bomb that will eventually explode and could ruin your life.
The consolidation loan option
The worst thing you can do is to just keep ignoring your debts because trust me, your creditors won’t be. One popular option for dealing with big debt is to get a debt consolidation loan. If you could get a loan large enough to pay off all your creditors, you’d have just one monthly payment and it should be for much less than the sum of the payments you’re making now. Of course, the caveat here is that you would have to be able to borrow enough to pay off your creditors, which could be very difficult. Banks and credit unions are not anxious to give unsecured loans to those who are already deeply in debt. However, if you have equity in your home, you might be able to convert that into a large enough loan to pay off all your debts.
The credit counseling option
A second option for dealing with big debt is to get consumer credit counseling. There is probably a credit-counseling agency in your area where you could get help. The way this works is that you would have a credit counselor who would work with you to develop a payment plan, which he or she would submit to all your creditors. If they all accept your plan, you would not be required to pay them any longer but would send one payment a month to the credit counseling agency instead. Again, that payment should be less than the total of the payments you are currently making because the credit-counseling agency should be able to get your interest rates reduced. However, it will probably take you five years to complete your plan.
The bankruptcy option
A third option for dealing with big debt is to file for bankruptcy. A chapter 7 bankruptcy will dismiss most of your unsecured debts, including medical bills, personal loans and credit card debts. Unfortunately, it can’t do anything about student loan debts, alimony and child support or secured debts such as an auto loan. A bankruptcy will stay in your credit report for as long as 10 years during which time you may find it difficult to get any new credit. Plus, it’s a public record that will be with you forever and that will show up on background and credit checks as done by government agencies or future employers.
Why debt settlement is a better option
Debt settlement is a better option than bankruptcy and in most cases even better than borrowing money or credit counseling. This is because debt settlement can actually reduce your debt by as much as 50%. Our trained debt counselors could negotiate with your creditors to get both your balances and interest rates reduced to help you become debt free in two to four years. Debt settlements are unlike bankruptcy in that they won’t show up on background or credit checks.
Call us today
Don’t let debt ruin your life. Call us today or fill out the form on this page for a free debt analysis and estimate. We charge no upfront fees so you have nothing to lose by putting us to work to settle your debts.