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 a portion 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.
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 resolve
their debt issues. To find out if debt settlement is right for you,
fill out our no-obligation on-line form or call 1-800-797-7813 today.
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