Other
Debt Management Options
 Debt
Consolidation
Debt consolidation involves obtaining
a new loan in an amount that is sufficient
to pay-off all your existing debt.
It's also called a consolidation loan.
For those individuals who are already
in debt or who have poor credit, this
approach involves the challenges and
difficulties of QUALIFYING for a NEW
loan. Additionally, borrowing money
is not always the most effective approach
to eliminating debt. It is important
to note that unlike debt
settlement where you typically
pay only 25-50% of your outstanding
balances, with debt consolidation
you are still responsible for all
of your existing debts.
Consumer
Credit Counseling
Consumer credit counseling is another
popular option for individuals who
are seeking relief from their debt.
It is a service that offers the consumer
counseling on how to work out a realistic
debt repayment plan. The goal is to
ensure that debts are paid back over
a period of time and provides the
debtor an option of making one payment
to a consumer credit counseling agency.
At best, credit counseling programs
have had mixed results as these agencies
do not negotiate with creditors to
lower the amount of debt, and as with
a bankruptcy petition, your credit
report will most likely be affected.
Other common problems include late
fees and penalties caused by the mismanagement
of payments to creditors. Credit counseling
agencies work for "Lenders,"
not the consumer, and sometimes the
program takes years longer to complete
than a debt settlement plan.
Bankruptcy
Bankruptcy is a debt resolution alternative
sometimes offered to consumers who
are seriously in debt. Bankruptcy
involves the filing of a petition
with the bankruptcy court in order
to obtain protection from creditors.
The choice to file bankruptcy may
have more negative than positive effects
and is usually devastating to your
credit. In addition to filing fees
and possible legal bills, bankruptcy
can remain on your CREDIT PROFILE
for up to ten years and can affect
future credit, housing and employment
applications. Bankruptcy is regarded
as a poor choice and an irresponsible
alternative to eliminating debt.
Option
One Financial Services, Inc. has years
of professional experience in eliminating
debts and helping clients to become
debt free. To find out if debt settlement
is right for you, fill
out our FREE, no-obligation on-line
form or call 1-800-797-7813 today.
Sign
Up for Free Consultation
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