Is Debt Settlement the Appropriate Debt Relief Solution?

Whether it is debt settlement, debt consolidation, credit counseling, or bankruptcy... how do you know which solution is best for your current situation? The plain truth of the matter is that no one solution is right for everybody. Consider your options carefully and do plenty of research so that you make the most accurate informed decision for you and your family.

Consumer Credit Counseling typically shows up on your credit report for as long as you are enrolled in their program, standardly this period of time is 5 to 15 years. Having "CCC" appear on your credit report can be viewed by creditors and lenders as a third party settlement, which is similar to Chapter 13 Bankruptcy. Your payments are typically still quite high, and if "life happens" and you are unable to meet your monthly obligation to them the program is usually less forgiving, and you may find yourself out of the program facing the creditors on your own again. There is little or no flexibility with this type of program. Additionally, the credit counseling agency generally receives a "kick back" of some kind from the creditor, which leaves one to ask just how much they truly have the consumers best interest at heart.

Debt consolidation is often times a good solution for consumers who have good credit, and are looking to pay their debt back with a lower interest rate. The downfall in most circumstances is that you can be trading off your unsecured debt for secured debt, thus making it concerning for those struggling to meet their current obligations. In this circumstance, if you find yourself in a bad situation and are unable to make your payment, at this time a dinner once charged on your credit card could now be placed against the equity of your home. Additionally, if your credit has suffered because of late payments in the past, you may not be eligible for this type of assistance, or may not qualify for a reasonable interest rate on a consolidation loan.

If you are having difficulty meeting your financial obligations, are either behind, or almost behind and have experienced a legitimate financial hardship, debt settlement may be the appropriate debt relief option for you. Debt settlement works as a last effort for those considering bankruptcy. Through a good debt settlement program, consumers may resolve their unsecured debt for far less than other programs, in a shorter period of time. Additionally, most debt settlement companies recognize that sometimes things happen and you may not be able to meet your payment obligation, debt settlement companies are far more flexible in reworking your program to suit your current situation, and in most circumstances you can resolve your debt in approximately 24 to 36 months.

Chapter 13 Bankruptcy is the option most people don't wish to even consider. Additionally, keep in mind that like consumer credit counseling, you will be given a set repayment schedule, and they have strong guidelines you must adhere to. There is little or no room for those unexpected expenses that occur in all of our lives, and you could find yourself with no protection even after filing for bankruptcy.

No matter which option you select, check into them all, and make an informed decision. There is a lot of free information available on the internet to assist you in determing which debt relief option is most suited to your situation.

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