March 23, 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 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.

Americans Look for Relief as Consumer Debt Levels Continue to Break Records

Consolidated Credit sees a 30% increase in calls as more Americans look for solutions to record-high debt levels FORT LAUDERDALE, Fla., March 22, 2018 /PRNewswire/ -- The beginning of each year is usually a busy time for consumer credit counselors as ...

Published:  Thu, 22 Mar 2018 05:09:00 GMT

5 Reasons Debt Relief Programs Cause More Pain Than Relief

You've seen the ads. "Hounded by creditors More than $10,000 in debt Call us to reduce your debt, lower your monthly payments and be debt free in 24 months." Gosh that sounds great, where do I sign up Obviously, per the article title, debt relief ...

Published:  Mon, 19 Mar 2018 13:12:00 GMT

Inexpensive And Enjoyable Hobbies Listed Down By National Debt Relief

There are a number of cheap yet enjoyable hobbies consumers can take up during their spare time and National Debt Relief shares a great list to choose from. The article titled "8 Fun Hobbies You Can Do on the Cheap" released March 21, 2018, helps ...

Published:  Thu, 22 Mar 2018 09:44:00 GMT

Lawsuit calls for Education Department to end partial student debt relief

March 19 (UPI) --A legal services clinic called on a federal judge to block the U.S. Education Department from using Social Security data to deny loan discharges to defrauded students. Harvard University's Project on Predatory Student Lending filed motion ...

Published:  Mon, 19 Mar 2018 21:09:00 GMT

Former Corinthian College students continue to be denied full debt relief

Amy Martyn is a writer and investigative reporter now based in San Diego by way of Tijuana, BC, Dallas, TX and Los Angeles, CA. She primarily writes about how consumers, taxpayers and businesses are affected by corporate and government policies. Read Full ...

Published:  Tue, 20 Mar 2018 11:42:00 GMT

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