There are thousands (maybe millions) of people today that are saddled with mountains of debt. What's more is that the recession, at this time, does not appear to be ebbing. Interest rates seem to climb daily. If you are one of those facing lots of debt, understanding your debt relief options is key to navigating that mountain of debt. This article will discuss two main options: Debt Settlement and Debt Consolidation. You will then have more information when determining which debt relief option is best for you.
The first debt relief option we'll discuss is debt settlement. This is clearly one of the more efficient ways of handling debt relief today. Basically, this type of debt relief makes use of a debt management professional who acts as an intermediary between you and your creditors. Debt settlement, when chosen as the preferred debt relief strategy, requires lots of planning. Such planning is handled by both you and the debt relief specialist working your case.
Once your restructured repayment strategy is agreed to by your creditors, this type of debt relief allows you to continue on with your life without the stress that's typically associated with a high debt load. This form of debt relief does not eliminate debt; it just makes it more manageable.
Debt consolidation is another form of debt relief. However, as opposed to the debt settlement option above, this debt relief tactic basically pools all of your debts into a single monthly payment. This method can involve additional costs so it's not usually the preferred method of debt relief for most. Despite the costs, though, this option does become a viable alternative if debt settlement cannot be implemented. The biggest downside to this debt relief method is the fact that many debt consolidation companies charge a premium for their services. The obvious benefit, however, is the fact that once you've consolidated your debts, you no longer have multiple debt responsibilities scattered about.
In the end, you need to choose what is best for you. Hopefully, you now have a bit more information to base your decision on.
The first debt relief option we'll discuss is debt settlement. This is clearly one of the more efficient ways of handling debt relief today. Basically, this type of debt relief makes use of a debt management professional who acts as an intermediary between you and your creditors. Debt settlement, when chosen as the preferred debt relief strategy, requires lots of planning. Such planning is handled by both you and the debt relief specialist working your case.
Once your restructured repayment strategy is agreed to by your creditors, this type of debt relief allows you to continue on with your life without the stress that's typically associated with a high debt load. This form of debt relief does not eliminate debt; it just makes it more manageable.
Debt consolidation is another form of debt relief. However, as opposed to the debt settlement option above, this debt relief tactic basically pools all of your debts into a single monthly payment. This method can involve additional costs so it's not usually the preferred method of debt relief for most. Despite the costs, though, this option does become a viable alternative if debt settlement cannot be implemented. The biggest downside to this debt relief method is the fact that many debt consolidation companies charge a premium for their services. The obvious benefit, however, is the fact that once you've consolidated your debts, you no longer have multiple debt responsibilities scattered about.
In the end, you need to choose what is best for you. Hopefully, you now have a bit more information to base your decision on.