If you have too much debt, there are at least 4 credit solution strategies you can use to reduce or eliminate it: debt consolidation, debt settlement, bankruptcy and putting up a defense in legal way.
Each one of these can be a viable solution for getting out of debt, depending on the circumstances you’re in and the resources you have available.
Any one of these can get you out of debt when used properly, but each has very different effects on your wallet and your credit report:
- Debt Settlement– This is when you negotiate with creditors to pay less than you owe a debt. Often, the settlement is a one-time payment or series of payments that requires months sometimes even years to accumulate, There are some serious negative consequences to this option.
- Debt Consolidation– This process involves combining all debts and taking out one loan to repay them. A single payment replaces multiple payments to multiple creditors. It’s possible the monthly payments and interest rate will go down, but it’s also probable the payoff will take longer and have an impact on your credit score.
- Bankruptcy– This is the last resort for someone who has met a severe and unexpected circumstance (such as job loss or medical bills) and is unable to pay outstanding debts. Bankruptcy allows you to wipe out all unsecured debt, but your credit history will be damaged for up to 10 years.
- Legal solutions– If you are really in such a drastic situation and not at all able to pay the card payment or loan payment, the best way is to defend it legally like ‘drastic situation call for drastic measures’. Our expert lawyers at A2Z Solutions will help you out from these burdens forever but your credit history will be damaged for up to 10 years.
If you got too much debt to deal with, we do have 4 credit solution strategies – either you can use to reduce it or eliminate it by: debt consolidation, debt settlement, bankruptcy and putting up a defense in legal way… Read More