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      January 21, 2018

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Related Articles

Benefits of Debt Settlement

Debt Consolidation vs Debt Settlement

Debt Relief vs Bankruptcy

Pitfalls of Declaring Bankruptcy

Reasons for Debt Consolidation

The Bankruptcy Process Explained

What Is Debt Consolidation?

What Is Debt Negotiation?

What Is Debt Settlement?

What To Do if You're In Debt

 

Top Consumer Reviews Articles

TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

Debt Relief vs Bankruptcy

Every day, individuals and families are forced into bankruptcy simply because there is no other way out of their financial distress. It is important to realize that, before having to file for bankruptcy, every possible option should be explored to help avoid the single most damaging blemish that a credit report can possess.

Companies that offer debt management, also known as debt relief, provide special programs to help those eligible to repay their debts without having to file for bankruptcy. Many people assume that just because their payments are already late and their credit is already bad, bankruptcy cannot possibly hurt them. However, nothing could be further from the truth. Bankruptcy is severe and is only for those who have exhausted all other efforts. When you file for bankruptcy, your credit report will reflect the filing for up to 10 years. Whenever you apply for a credit card, a mortgage loan or even apply for a job, they will know that you filed for bankruptcy.

So, how will debt consolidation or debt settlement services prove to be more beneficial? Quite simply, either of these methods will show your attempt to repay a debt and will only be reflected on your credit report for up to 7 years. With a debt consolidation service, most creditors will begin reporting your account as current within months of enrolling in a program. A debt settlement notation will appear as "Settled account" and will show future lenders that you repaid your creditor(s) according to a mutually agreed upon amount.

Now that we have explored the long reaching effect of debt management and bankruptcy, take a moment to consider the immediate differences of each. When you enroll in a debt consolidation or debt settlement program, you are simply picking up the telephone and speaking with a credit counselor about your finances. If approved for a program, you will sign a contract and payments will be deducted from your bank account according to the agreement. If you file for bankruptcy, you will be required to disclose every asset that you own, your income and expenses. If you own more than you are permitted to keep according to your state's exemption laws, you may be forced to surrender it to the bankruptcy court who will liquidate the item(s) to repay creditors. In addition, you are required to appear for questioning by a court-appointed trustee hired to oversee your bankruptcy case. When you look at the immediate differences between debt consolidation or debt settlement and filing for bankruptcy, it's obvious that the latter should only be chosen as a last resort.

Debt consolidation is designed to lower your monthly payments and interest rates in an effort to make your budget more feasible. Debt settlement, on the other hand, is a fast and permanent solution to your debt providing you have the funds available to negotiate a fair amount. Most debt management companies will conduct a brief telephone interview, evaluate your situation and explain what options are available for your own individual situation. There is no one universal method that works for everyone, which is why debt management is a uniquely customized program that is as individual as the debtors themselves. Choosing the right debt relief program is all about recognizing the need for help and not being too proud to ask for it.

COMMENTARY: Property tax relief and a debt plan for Texans

Here in McAllen, and across the state of Texas, homeowners and businesses are being crushed by property taxes. Over the past 20 years, property tax collections in Texas have increased by 195 percent. Rising property taxes are undermining private property ...

Published:  Sun, 21 Jan 2018 11:09:00 GMT



Euro Working Group Head Blames Politicians for Greek Crisis, Supports Debt Relief

In an interview with the Athens News Agency, Austrian economist and outgoing chief of the Eurogroup Working Group (EWG) Thomas Wieser blames Greek politicians for the 2008 financial crisis in the country and says he supports Greek debt relief. Asked ...

Published:  Sat, 20 Jan 2018 10:02:00 GMT



Outgoing EWG president Th. Wieser: Debt relief for Greece "highly advisable and highly probable"

Thomas Wieser, the outgoing chief of the Eurogroup Working Group (EWG), is an Austrian economist with extensive experience in macroeconomic policy and EU financial affairs. He ostensibly is one of the few Europeans who have known from the start and "from ...

Published:  Sat, 20 Jan 2018 04:22:00 GMT



Top 10 Jungle Explains Debt Relief: Your 5 Choices in the Financial Jungle

"Debt is an issue that can spiral out of control in a short period of time. The only real way to tackle rising debt is to take action," said Charlie Rose of Top10Jungle.com, "Although it can be incredibly difficult to face up to the fact that you're in ...

Published:  Tue, 16 Jan 2018 14:51:00 GMT



Best Personal Loans for Debt Consolidation

When random purchases, necessary expenses or extravagant splurges catch up with you, the best way to consolidate credit card debt can be through debt consolidation. Debt consolidation is a way to refinance existing debt by taking out a new loan, which can ...

Published:  Wed, 10 Jan 2018 13:00:00 GMT



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