Credit Debt Bankruptcy Alternatives - The Top 3 Loan Relief Solutions For Plastic Money

When thousands of people were looking for credit debt bankruptcy alternatives, top 3 loan relief solutions for plastic money made their way to the market and made their presence felt.
By: debtsquashers.com
 
Feb. 24, 2011 - PRLog -- When thousands of people were looking for credit debt bankruptcy alternatives, top 3 loan relief solutions for plastic money made their way to the market and made their presence felt. These options are today widely used because of their ability to help the consumers to move out of the cobweb of unsecured loans and also aids the consumers in maintaining a proper credit score or FICO score. The methods are faster compared to bankruptcy and they are free of the financial troubles which are associated with the method of bankruptcy filing. These three methods are discussed in brief in the following segment of the article.

Top Method 1: This is the option of loan settlement which is also known as credit debt negotiation. The method specializes in partial elimination of the outstanding for the consumers and whatever impact falls on the credit score during the process is reverted back to the original level at the end of the process. The negotiation with the creditor is either carried out by the consumer or a professional settlement firm hired by the consumers. The creditor here receives a threat of bankruptcy along with an offer of up to 50% repayment of the dues. The creditor agrees because it never wants bankruptcy solution and hence, the consumer needs to repay the remaining amount to the creditor either in bulk or in EMIs of 6 months.

Top Method 2: This is the option of loan consolidation where all the EMIs paid by the consumer to the creditors are bundled to one single lower monthly payment. The overall payments decrease in volume because of the reduction in the interest rates. The consolidator hired by the consumer will individually negotiate with each creditor and ask for reduction in the interest rates and in order to force the creditors to agree, the consolidator uses the bankruptcy threat. The creditors agree and reduce the interest rates and break the loans into EMIs. The consumer then pays a bulk money every month to the consolidator who then distributes the same as EMIs to the creditors.

Top Method 3: This is the option of debt management. The consumers make new budget and cut expenses to save more money. The save money along with little more addition from monthly income is used for repayment of the dues starting with the plastic money which has the highest interest rates. This expedites the repayment and then when the card with the highest interest is paid off, the consumer moves to the card with next highest interest and so on. This helps in containment of the outstanding due to high rates of interest and organizes the payments as well as expedites the repayment process.

Debt settlement can make financial sense for consumers and small businesses that are experiencing a financial hardship and have at least $10k in unsecured debt. It is not the only option however. Check out the following link to speak with a debt relief specialist that can go over all your options for free.
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Source:debtsquashers.com
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Tags:Debt, Debt Solutions, Debt Relief, Debt Settlement, Get Out Of Debt, Debt Settlement Programs
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