Compare and choose the best debt relief options for yourself

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How to choose the best debt relief option

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Debt relief options are limited when you're unable to resolve your debt problems by reducing expenses and saving money to pay down debt aggressively. Debt relief options are few, but you should consider each one in your effort to repay your bills. When you can no longer afford a high debt load, you can look for legitimate options like Debt settlement, Debt management, Bankruptcy.

You need to understand and gather information to decide which options will meet your debt relief needs. Which one will best suit your immediate debt problem and your future credit and financial goals? Watch the video to know how you can choose a debt relief option that fits your financial situation.

  • Debt settlement - Negotiating to reduce the debt payoff amount
  • Bill consolidation - Making a single monthly payment to repay your multiple unsecured debts
  • Debt management - Reducing your monthly payments to an affordable level and paying off unsecured debts (credit cards, medical bills) in 4 to 5 years
  • Bankruptcy - Where you can discharge your debts or be placed on a court sponsored repayment plan

How to choose a debt relief option

  • Make a note of your debt amounts
  • Calculate your overall income
  • Analyze whether or not you can repay the debts in full
  • Compute how much you can shell out monthly to repay debts
  • Decide whether or not you want to keep your credit score intact or improve it
  • Think whether or not you can repay debts on your own or need professional help

If required, you can discuss these things with a knowledgeable person to decide whether debt consolidation option is more suitable or other debt relief options will work better for you.

FAQ

Does choosing a debt relief option also involves selecting a specific debt consolidation option?

Yes, though the basic consolidation strategy is the same, depending on the nature of your debts and your financial condition, you can choose a particular debt consolidation option to repay your debts in full.

Is a debtor free to choose a debt relief option?

Well, a debtor has to take the call of selecting one or two debt relief options, but it largely depends on the amount and nature of the debtor’s debt. If that person is not able to repay the debts in full, then debt settlement is the only option if not bankruptcy.

Does the company matter when you’re choosing debt relief options?

Yes, of course. You need to take the help of a reputable consolidation or settlement company that is reliable and into business for quite a long time. You also need to check the BBB ratings and customer reviews to select an authentic debt relief company.

How can you do the debt consolidation comparison and select the most suitable method?

First of all, gather knowledge about the consolidation methods. It will help you know the pros and cons of each of the options so that you can choose the best suitable one for your financial situation.

Last Updated on: Tue, 28 May 2019