Debt Negotiators Online

Debt Negotiators Online will help you navigate the maze of debt management. How do you evaluate the various options out there? Which option is right for you?

Here are your main options and some pros and cons:

1. Bankruptcy

If you think this is an option that you need to consider at this time, I recommend you meet with at least two competent Bankruptcy Attorneys. You need to know if you can qualify for a Ch. 7 or will be forced into a Ch. 13. Because of the new BK laws passed in 2005 liquidating everything and starting over fresh with a Ch. 7 BK is not as easy as it used to be. You now have to qualify. Many consumers find that even though they are drowning in debt they actually make too much money to qualify and are forced into a Ch. 13 BK. Chapter 13 is certainly not a pleasant experience to go through and in many cases will last for 5 years. Essentially it is a forced debt settlement plan that is overseen by the Trustee. Many consumers find that in a Ch. 13 BK they may still actually have to pay back all of the money that they owe. Again to learn the specifics of how BK would affect you, you must meet with a Licensed BK Attorney in your state.

2. Obtain A Debt Consolidation Loan

Trading one debt for another makes sense in some cases but not all. To take advantage of this option you must first have to have the ability to take out a consolidation loan or refinance a property. Many consumers find that this is simply not an option especially in this current financial climate.

3. Do Nothing

You might laugh that I have included this as an option (albeit not a good one). The unfortunate reality is that many consumers end up taking this as a default option simply, because they don’t know what to do. In rare instances doing nothing might actually make sense, but for most people this might seem easy now but it is just going to compound the problems down the road. The debt is not going to magically go away simply because you ignore the phone or don’t open the mail. Don’t wait until you receive a lawsuit to look for help. At that point you have considerably less options available then you do when you first realize you cannot keep up on your payments.

4. Consumer Credit Counseling Service

This is the most familiar option to most consumers. Usually these programs are funded by the creditors themselves. The general concept is that instead of making the minimum payments to all of your creditors individually, you will make one payment to the CCCS company. They will negotiate your interest rates down with your creditors and create a plan, usually around 5 years to have all of the debt paid back. With this plan you will certainly save money over simply paying minimum payments, but many consumers find that they either cannot qualify for a program like this, or they can’t afford the monthly payments to the CCCS company.

5. Negotiate Settlements with your creditors For Less Than Full Balance.

Unlike CCCS programs where they reduce your interest rate, with debt settlement your actual principle debt is negotiated down. This allows you to pay off the debt much quicker and save quite a bit of money.

Filed under: debt settlement