Personal Debt Relief 2010 - Learn Ways to Make a Legitimate Debt Settlement Deal
Before you compare debt reduction methods with other solutions, you should ask yourself whether you are making fair comparison or not.
Debt settlement is one of the most popular options of debt reduction in the market today.
However, when you compare this option with debt consolidation or interest holiday, you are making an unfair comparison because there is no similarity between the two relief options under consideration.
As far as debt settlement just concerned, the total loan amount is brought down by forty to seventy percent.
On the other hand, consolidation will simply help you take advantage of the difference in interest rates to bring down your debt as you make regular repayments.
Needless to say, regular repayments are a must as far as consolidation is concerned.
If you do not repay your debts on time, you will automatically lose the benefit.
This is because lenders will automatically impose higher interest rates when you skip repayments.
Being unsecured loans, lenders are very scared of irregular repayments.
This is especially true in case of a recessionary economy when bankruptcies are very high.
The irony is that you should take advantage of this fear of bankruptcies to assured going down your debt.
No lender will willingly encourage you to go in for bankruptcy.
Of course, they would give their right hands before they even make such an admission in public.
However, the general perception is that lenders are sick and tired of bankruptcies.
Instead, they are prepared to make exceptions to their own rules.
This change of heart also has to do wit the fact that the government had to step in with debt settlement problem for lenders themselves.
The only difference is that this settlement program is the stimulus package.
The government utilized these funds to buy the losses suffered by the lenders.
In exchange, they were allowed to repay the debt over a period of time so that they could survive the recession.
What you are asking from your lenders will be no different.
If you want to compare settlement with another debt reduction option, you should compare it with bankruptcy.
Only when you make this comparison will you understand the fantastic benefits and settlement offers without the incidental costs and consequences of bankruptcy.
The next time any credit counseling or credit card expert advices you to go in for consolidation in place of settlement, you can be rest assured that the expert is comparing apples and oranges and is best avoided.
Debt settlement is one of the most popular options of debt reduction in the market today.
However, when you compare this option with debt consolidation or interest holiday, you are making an unfair comparison because there is no similarity between the two relief options under consideration.
As far as debt settlement just concerned, the total loan amount is brought down by forty to seventy percent.
On the other hand, consolidation will simply help you take advantage of the difference in interest rates to bring down your debt as you make regular repayments.
Needless to say, regular repayments are a must as far as consolidation is concerned.
If you do not repay your debts on time, you will automatically lose the benefit.
This is because lenders will automatically impose higher interest rates when you skip repayments.
Being unsecured loans, lenders are very scared of irregular repayments.
This is especially true in case of a recessionary economy when bankruptcies are very high.
The irony is that you should take advantage of this fear of bankruptcies to assured going down your debt.
No lender will willingly encourage you to go in for bankruptcy.
Of course, they would give their right hands before they even make such an admission in public.
However, the general perception is that lenders are sick and tired of bankruptcies.
Instead, they are prepared to make exceptions to their own rules.
This change of heart also has to do wit the fact that the government had to step in with debt settlement problem for lenders themselves.
The only difference is that this settlement program is the stimulus package.
The government utilized these funds to buy the losses suffered by the lenders.
In exchange, they were allowed to repay the debt over a period of time so that they could survive the recession.
What you are asking from your lenders will be no different.
If you want to compare settlement with another debt reduction option, you should compare it with bankruptcy.
Only when you make this comparison will you understand the fantastic benefits and settlement offers without the incidental costs and consequences of bankruptcy.
The next time any credit counseling or credit card expert advices you to go in for consolidation in place of settlement, you can be rest assured that the expert is comparing apples and oranges and is best avoided.