Watch video: How can you choose the best debt relief option
How to choose the best debt relief optionby Michael Bovee
Analyze all the debt relief options and choose the right one
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. Though the various types of debt relief options are few, yet you should consider each one in your effort to repay your bills. The legitimate options that enable you address a high debt load you can no longer afford are Debt settlement, Debt management, Bankruptcy.
Deciding which of these options will meet your debt relief needs starts with understanding and gathering information. 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 you.
- Debt settlement - Negotiating balances for less than your balances
- 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
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.