Personal Debt Relief Options – The Top 5 Options For Getting Out Of Debt

Oct. 11, 2010 - PRLog -- The role that money plays in our life is incredible and so is the fear that the word 'Debt' brings in our life. Undoubtedly, the depression caused by debt is the sole reason behind the existence of various debt relief options like Debt settlement, debt consolidation etc. However, the different debt relief options available are often confusing to a layman debtor, as one tends to keep guessing about the suitability of each option according to one's particular financial condition as well as the scope of negotiation with the creditors. Moreover, the various debt relief scams may further mislead the debtor. Thus it is highly important to gather primary information about the various debt relief options available Let's evaluate all the options before taking the final decision.
1. Credit Counseling: In case you fail to make a repayment plan with your creditors or are unable to create a workable budget or to keep a track of your expenses and increasing bills and summation of your debts, you should consider taking help of this option by contacting a professional and reputable credit counseling company. These organizations are mostly non-profit and solve your financial problems by advising you on managing your money and budget and would help you in forming a complete debt management plan to get you back on track. Make sure that you choose a reliable and experienced credit counselor to solve your financial dilemmas.
2. Debt Management Plan (DMP) or Debt Settlement: In case your financial debt has reached too far and wide, the Debt Management Plan can help you out with its sure and systematic process of debt payment. DMP provides you with a process where you deposit money on a regular basis to a DM organization, with which you strike a deal, which in turn, will pay off your unsecured debts like credit card bills, student loans and medical bills, to your creditors on your behalf. This plan also includes the provision of settling your debts at much lower interest rates as well as reduces your debt amount by waiving certain fees, depending upon the successful negotiation with your creditors. The creditors generally agree to reduce the debt amount, to avoid complete non-payment or bankruptcy filing by the debtor.
3. Debt Consolidation: The procedure where all your multiple debts are consolidated in one single unit, where you have to make one single, reduced and simplified payments towards your bills and debts, at each regular interval or in full, according to your suitability. This option is pretty hassle-free and affordable as a good debt consolidation company divides your total funds among your multiple creditors and makes the process least confusing for you. With successful negotiation with your creditors, it can also reduce the rates of interest and increase the payment period as well.
4. Bankruptcy: This definitely should be the last option when a debtor finds oneself completely unable to pay even the slightest of debt amount to his creditors. However, this acts as a fresh financial start for the debtor but the blemishes of bankruptcy stays and stains the credit report for at least 10 years. The adverse effects of it on the debtor's credit report are varied just as its various advantages. There are various plans under bankruptcy too like chapter 7, chapter 13, chapter 11 etc, which implies to specific financial condition of the debtor and the type of debt.
5. Tax Relief: Sometimes an individual may even be indebted to IRS (Internal Revenue Service) where one may directly negotiate with the IRS official regarding the financial problem. The tax agencies may provide tax relief on successful negotiation, apart from extension of payment period, reduction or elimination of interest rates and penalties and decreased tax payment, depending upon your financial situation and gravity of the matter.
Free Debt Advice
(http://www.creditdebtsettlement.com)

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If you are over $10,000 in unsecured debt you should at least consider getting a debt settlement. Creditors are scared about collecting on their unsecured debt and you as the consumer can benefit. Check out the following link to find the top performing debt settlement companies.
Free Debt Advice
(http://www.creditdebtsettlement.com)
Or Call - 8008940286