Posts Tagged ‘get out of debt’

Debt Settlement vs Bankruptcy

Debt settlement  Why should you consider it before bankruptcy?

Debt is major concern for one and all given the present economic scenario. However, the pertinent question that remains is what the major steps that can be taken in the face of debt to erase it altogether are. This is amongst those financial considerations that need to be contemplated seriously while taking into consideration various other factors. Now, talking about erasing debt, you’re sure to be wondering whether or not it’s really possible to “erase debt”. Well, this is again a frequently debated question too. If you’re practically over your head in debt so much so that you’re unable to pay your bills and getting harassed by collection calls, then it’s definitely time that you took things seriously.

What About All The New Debt Relief Companies?

Debt relief is big business because many people are in financial trouble these days. Stinking economy, delinquent mortgages, credit card debt at all time highs, all provide opportunities for the scammers to jump in make some money and move on.

It only takes a few bad apples to spoil it for everyone else. So beware and do a little research before signing a contract with any debt relief company.  

You should stay away from companies where their web site that is newer than a few months old.  To check the age of the web site go to any domain registry service (for quick checks I use whois.com). Type in the web site domain name, scroll down and it will show you when it was created.  

Debt Solutions – which are best for getting out of debt while maintaining your credit?

 

Some debt solutions are better than others and some affect your credit more than others. So which is best?  Use the following to help you decide. 

 Get your 3 scores for free

DIY

 You will not necessarily get lower interest rates on existing balances unless you do the negotiations yourself.  You can save money by paying more than the minimum monthly payment and lower interest rates if you are successful in your negotiations. 

On time payments will help your credit score and will make getting new credit and/or lower rates on loans easier. Very positive.