Bankruptcy Alternatives

Bankruptcy Alternative - Debt Settlement

Debt Settlement, is the act of settling your debts for a less than owed amount with your creditors. Simple enough, with Debt-Negotiation-Services it is. Our Debt Settlement and Negotiation Programs are the quickest and least costly option to get out of debt without entering bankruptcy and the lengthy process involved.

Bankruptcy Alternative - Credit Counseling and Debt Management

Several Credit Counseling Services provide what is referred to as Debt Management Programs. A number of them charge an upfront fee for their service, which is not very appealing to their prospective clients, seeing as how they are already in debt.

Creditors may be willing to accept lesser payments if you are working with a reputable credit counseling service. Be aware, Credit Counseling Organizations do face ongoing examination because of their misuse as a "nonprofit" organization. Because a organization says it is a "non profit," there is no warrant that the services provided are free, affordable, or even legitimate. Debt management Companies and Credit Counselors receive payment as long as program enrollment remains, so it is in their best interest to keep you in the program as long as possible. They want to force consumers to pay as much money as possible to the creditors. They may help lower your interest rate a few points, or skip a payment or two, but the credit card companies are pleased to do this when they know you are going to keep making payments that Debt-Negotiation-Services could have negotiated for pennies on the dollar.

The assertion still remains, Credit Counseling Services work partially for the client and more for the creditors and banks.

Bankruptcy Alternative - Debt Consolidation and Consolidation Loans

Consolidation Loans, and Debt Consolidation is the substitute of several loans with a single loan, often with a lower monthly payment and a longer repayment period. Regarding debt consolidation, the Federal Trade Commission states, that a consumer may be able to lower the cost of credit by consolidating debt through a second mortgage or a home equity line of credit, but these loans require the home as collateral. If you cannot make the payments, or if your payments are late, you could lose your home. Not to mention a large portion of our clients don't own a home, so in most cases they're not even eligible for a consolidation loan.

What's more, the costs of consolidation loans can add up. In addition to interest on the loans, you may have to pay "points," with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.

Bankruptcy Alternative - Do Nothing

Essentially, most people with financial problems try to stay positive about their situation and since it is quite normal to experience financial difficulties in life, some consumers just ignore the debt problems and hope things get better in the future. Regrettably, when buried in debt, things will usually get worse before they get better. That is unless you take charge of your debt, and seek guidance. Debt Negotiation and Settlement are two very reasonable methods to become debt free, leaving your financial struggles behind - and in the hands of experts.