General Questions About Debt
What is Debt Settlement?
Debt settlement which also known as a debt management or debt negotiation is an approach to debt reduction in which debtors and creditors are compromised and agree on a reduced balance that, once satisfied, is considered payment in full.
As long as debtors continue to make monthly payments as usual, creditors will not negotiate on a reduced balance. However, when they don't, balances continue to grow due to late fees and ongoing interest.
If you need help getting out of debt, you can apply for a callback and one of our consultation will contact you shortly. Our Service is totally free.
What is Credit Counseling?
Credit counseling involves educating consumers about how to avoid incurring debts that cannot be repaid. The process of credit counseling is actually more debt counseling than a just credit education as people tend to think.
Credit counseling includes a negotiation and settlement with creditors to set up a debt management plan for the debtor. Debt management plan will help debtor repay his debt by working out on a reduced payment.
How can I make the collector stop calling?
Under the federal Fair Debt Collection Practices Act, you have the right to tell debt collectors to stop calling you at work if your employer prohibits such calls. If collectors call you again at work after you have told them to stop, they have broken the law and you should consult a consumer law attorney. If you are having trouble paying your debts, you may want to get professional debt help.
What is bankruptcy?
Bankruptcy is a process that allows you to eliminate your debts under the protection of bankruptcy court. Bankruptcies can generally be described as "liquidations" or "reorganizations."
Should I file bankruptcy?
Many people are trying to avoid bankruptcy for good reason. Filing a bankruptcy will destroy your credit rating and you probably won't be able to qualify a loan for the next 10 years, and if you do, interest rates will be high like never before. Besides that, it has impact on your emotions too. A lot of people expressed regret after filing bankruptcy.
Couple of alternatives for bankruptcy:
- Debt Negotiation – Try to negotiate and settle your debt with your creditors. You can read more about the process here.
- Credit Counseling – if you aren't able to manage a negotiation with your creditors, try to contact a consumer credit counselor. Sometimes they can lower your payments. Read about consumer credit counseling here.
- Savings – pretty obvious alternative, just use your savings for repaying your debt.
If you've already tried all of the options above, seems like there is no other choice but to declare bankruptcy.
Back to Homepage »
|
