Excessive debt situations can arise from myriad types of different situations. These different situations can call for a range of debt relief options. While bankruptcy is a powerful tool that can help individuals and families find the fresh start that they deserve, there are other options that can deliver highly effective debt relief as well.
Credit Counseling
Credit counseling involves the preparation of a budget and assistance with the management of debt that allows people to avoid the perceived stigma of bankruptcy. Credit counseling has the additional advantage of not appearing on a credit report and all or a portion of the debt is paid.
debt consolidation
With debt consolidation, you would make monthly payments and your creditors would accept payment of compromised amounts. Debt consolidation, like credit counseling may create a lesser impact to a credit report than bankruptcy because the debt consolidation itself does not appear on a credit report and the credit report reflects that some of the debt has been paid.
direct negotiations
Direct negotiations, like debt consolidation, involves settlement of debt by paying a portion of the debt and the remainder is forgiven. Direct negotiation can often be accomplished at a relatively low cost to you.
Many people turn to these options due to a fear of bankruptcy and any stigma it may carry. In reality, with the economic challenges that almost all Americans are facing, the stigma of bankruptcy has greatly lessened. In addition, the filing of a Chapter 7 bankruptcy can stop your debt from growing and provide you a needed opportunity to actually restore your credit rating. Take the time to learn what good bankruptcy can do for you.
