When you're unable to make your bill payments and cannot manage your finances with ease, try finding a solution so as to avoid falling further behind. Go for a free counseling session and find the right solution to get rid of debt. If you are wondering what debt solutions are all about, check out the topics below:
We have listed below 6 solutions to get rid of credit card bills and other dues.
| Questions | Debt Consolidation | Debt settlement | Debt Management | Self Repayment plan | Bankruptcy |
|---|---|---|---|---|---|
| Will creditor or collection calls stop? | Yes. They will communicate with your consolidation company. | Yes. All communication will be done via a settlement company. | Yes. Debt management company will communicate on your behalf. | Yes. But make sure you keep paying every month. | Yes. Creditors are barred from collection efforts after you file. |
| Will interest rates be lowered? | Yes. The company negotiates to lower interest rates. | No. | Yes. The company negotiates to reduce the rates. | No. | Not all debts can be included. So, interest payment of those included will be eliminated. |
| Can I save on principal debt amount? | No. | Yes, you can save. | No. You'll save in interest when rates are lowered. | No. You can save in interest if rates are cut down. | Debts are discharged; hence you're no longer personally liable for the debt. |
| What are the third party fees? | a) One time representation fee to send letters and receive calls from creditor/collection calls. b) Monthly representation fee. |
a) One time representation fee. b) Monthly representation fee. c) A percentage of savings on debt. |
a) One time representation fee. b) Monthly representation fee. |
No. | Filing fees and attorney fees. |
| Credit effects of debt solutions | |||||
| Impact on credit score | Positive | Negative at first | Positive | Highly positive | Highly negative |
| Entry on credit report | It remains on the report till account is paid in full. | Late payments stay for 7 years; account reported as "Paid", "Settled", "Paid as agreed". Negotiate for "Paid", "Paid as agreed" status. | Report shows you're paying through credit counseling agency or Debt management company. | Account reported as "Paid". | Remains on credit report for 7-10 years. |
| Negative affect on credit score | No. | Late payments bring down your score. But once you pay off bills, your score improves gradually. | No. | No. On-time payments will have a positive impact on your credit. | Brings down your credit score by 200 points or more. |
| Availability of new credit | It will take some time before you get new credit. | Late payments will make it difficult to qualify for new credit. | It will take some time before you qualify for new credit. | Getting new credit will be easier. | Cannot get new credit for 2-4 years. |
| What we suggest | No obligation free debt counseling | No obligation free debt counseling | No obligation free debt counseling | Do it Yourself | Avoid bankruptcy |
* Note: Text denotes positive, Text denotes negative
