Bankruptcy and Debt Settlement and Consolidation Loans

Credit card debt can be a huge toll for debtors, often causing considerable stress. But, debt settlement and debt consolidation can sometimes help you find your way out of excessive credit card debt. When these avenues fail, bankruptcy is another solution to your debt.

Debt Settlement

The negotiation strategy with creditors to settle the credit amount to something less than the actual debt that you owe them is known as debt settlement. This method can be difficult for you if you owe money to many creditors rather than a single one because you will have to negotiate with each creditor in that case. Otherwise, debt settlement offers many benefits to the debtor because he or she has to pay a smaller amount than actual debt. If you opt for debt settlement companies for this process, they may charge a fee from you, and some upfront costs.

Debt Consolidation Loans

A single loan taken to pay all the existing creditors’ debts at a lower interest rate or in the form of reduced monthly payments is known as a debt consolidation loan. Usually, the customers who try to maintain the bills of more than a single credit card opt this method. With this, you get an advantage because of low-interest rates. You may also be able to improve your credit score by paying off the money you owe to the credit card companies. When you find that you are no longer able to pay your loan, you may lose any secured collateral you put up for the loan such as your home or vehicle.

If you have tried debt settlement companies or consolidation loans and found yourself still struggling to pay the debt, contact a Rio Grande bankruptcy attorney to find out how to eliminate all of your qualifying debt.