Which Type of Debt Relief is Right for You?

Offers debt relief programs and services to reduce debt through debt settlement and debt negotiation--a better alternative to bankruptcy and credit counseling services.

Philadelphia, IL (prHWY.com) January 26, 2012 - A midst the stacks of bills that come into your mailbox regularly each month and the outstanding balances that just never seem to shrink, it is understand that your current financial situation is a source of stress and anxiety for you. It may seem like that mountain of debt will simply never go away. However, there are several debt relief options you can consider which can help you to gain control of your financial situation. Each offers its different benefits and drawbacks, so you will want to review them carefully.

Consolidation Loans
These loans do not eliminate or reduce your debt, but instead they help you to reorganize your debt and make it easier for you to manage. Often, by consolidating your outstanding balances, you can enjoy a lower interest rate and lower monthly payments. This is often considered to be the most favorable option for managing debt because it does not affect your credit rating as a settlement or bankruptcy will. Further, with an installment loan, you will find that your debts are paid off in a set number of years, and you will see your balance shrink each month as you make regular payments.

Mortgage Refinancing
This is a form of debt consolidation that also will not put a "ding" on your credit report. With this loan, you do have the advantage of consolidating your high interest debt into a low interest rate loan. Further, the interest on this loan is tax deductible. However, some experts advise against this as an option for many people because it transfers unsecured debt into your homestead. Further, whereas an installment loan may be paid off in three, five or seven years, often the minimum term on a mortgage is ten years. So this extends the length of time it will take you to pay down that debt, and by extending the repayment, interest charged over the life of the loan may be more.

Negotiations and Settlements
In some cases, it does make sense to talk to your lenders and negotiate the balances and repayment terms. You can do this yourself by calling each of your creditors separately and telling them you are unable to make payments, or you can use the services of a professional negotiator. Through settlements and charge-offs, however, you are essentially defaulting on at least a portion of the debt that you owe, and this generally will result in a negative rating on your credit report.

Bankruptcy
Bankruptcy is often viewed as the last resort in terms of debt relief options. Because it does have the most significant impact on your credit rating and your financial future, it often should be considered when all other options for debt help have been exhausted or are not an option. You should discuss bankruptcy with a bankruptcy attorney to explore the different types of filings possible and to discuss which may be the best option for you.

With several options available, you will find that it is possible to find the debt help you need to get back on your feet financially once again.

CONTACT INFORMATION:
sam
MCAloans
888-321-3809
http://www.mcaloans.com/



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Tag Words: debt help, debt relief

Categories: Finance

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