Can you answer ruby’s question about Bankruptcy?:

I did not understand what a debt settlement company was all about. I thought I did but I soon found out it was not what I thought. I have made a mistake! They have a lot of my money and I thought I was doing the right thing. I just want to get my bill paid. Thank you.

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Can you answer p m’s question about Bankruptcy?:

did the creditors settled? could u give me tips on how to settle with them without using a debt settlement company. approximately what is the percentage they are willing to settle?

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Debt settlement and debt consolidation are vastly different.  An outstanding debt settlement company can diminish your total outstanding debt by as much as 40-60%. Like the title details, they achieve all this by negotiating a reduced amount with creditors.

Debt consolidation combines all of your separate debts –with no reduction in these amounts- into a single monthly payment. The collateral needed is often an individual’s home. Debt settlement actually saves you possibly thousands of dollars. Debt settlement outfits, frequently employing their preexisting relationships with collectors, are able to deal in a way that would be not possible for many people. Because of the advantages of settlement, it’s fast gaining preference vs. debt consolidation.

It’s a common concern: “How will debt settlement affect my credit rating?” In many respects, it may be worth the price to just free your mind of the weight that’s usually associated with having more owed than people can handle. Many are relieved to find that debt settlement typically results in only a short lived reduced credit score. Weighing the state of your situation right now, your credit level may not be affected at all. If you are behind with many of your accounts –with many of your credit cards at their limits- your credit may not move at all as a result of settlement. Debt settlement can bring your debts to a “zero balance”. Over time, this can likely change your credit score. This method can also drop thousands of dollars.

Be cautious: states don’t regulate many so called credit outfits. Watch for these when researching a service providing debt settlement:

A credible debt relief group will have a great better business bureau grading. Chamber of commerce membership is always good. Seek out reasonable fees. No excessive upfront fees. Make positive that all of your questions are satisfied.

Many individuals are meeting with debt businesses. This includes a qualified debt arbitrator. These skilled debt arbitrators are experts in debt settlement. Understanding and getting up-to-date with debt laws is one of their special attributes. A debt arbitrator will help you better understand your choices with relation to area debt settlement laws, bankruptcy help and debt consolidation.

You may know about debt consolidation options, debt settlement possibilities and credit counseling services. These are several of the talked about options, but what’s the best option for you? The only way to truly know –as every individual case is a bit different- is to get versed on the options, and to meet with a couple different types regarding your special situation.

Of course the options of the decision you make will affect your life for some time. As any bankruptcy lawyer will mention, bankruptcy stays on your record for many years. This is yet another contributor to why great options like debt settlement are definitely becoming more popular. As awareness of these benefits grow, more individuals are choosing more beneficial options.



Thanks to kent harper for contributing this article to our Bankruptcy blog:

Alternatives To Bankruptcy

Can you answer jen’s question about Bankruptcy?:

I need to consolidate my debts, either by getting a loan (unlikely with my credit) or through a settlement company. I want to use a good one, though, so does anyone have any recommendations? I could easily file bankruptcy with my income and lack of assets, but I would rather pay off the debts. Some of the collections are hostile, now, though, because I have so many different ones after me that I can’t possibly make my payments each month to each of them. This all stems from two hospital trips earlier this year. I don’t even own a credit card, so I’m not financially irresponsible. Just poor and uninsured. Any reccomendations would be very much appreciated!

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Can you answer new girl’s question about Bankruptcy?:

If you have had success working with an honest, reliable, authentic debt settlement please let me know

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