Efficient Debt Management Strategies - What is the Best Debt Management Solution For You

April 4, 2010 - PRLog -- Debt has created a mass agitation among the US nationals and this has led to a situation where most of the US people have become defaulters. This nationwide mass agitation has become a serious problem because of the factor that the country has been hit by a recession. The situation of recession has become so widespread that many people are facing the problem of unemployment. The problem can be eradicated by various debt management strategies. However, the most important thing that you need to keep in mind is that, there are various Debt Management Strategies and not every strategy will be suitable for you. So, which one is suitable for you? This can be sorted out by proper credit counseling.

The various Debt Management Strategies that can be availed are mentioned below:

• Debt Settlement: Debt Settlement is one of the best methods that can be used to eradicate the debt problems. You can go ahead and negotiate with the creditor and curtail the total amount of debt. This can either be done either by you or by the professional debt settlement company which you hire to negotiate on your behalf. The total amount of the debt can be reduced by the amount of 30%-70%. However, the remaining amount that creditor will ask for has to be given at one shot. If you are capable of providing that amount of money, it is the best option that you can avail.

• Debt Consolidation: The other method that you can go for is that of debt consolidation. In this method of debt relief, you need to go ahead and pick up a second loan with a little bit of higher interest rate. You can pay off all the existing debts with the second loan. You can opt for this strategy if you are not affected by the recession and if you have not lost your job. If you adopt this method, you need to repay that loan as well. In case of no job, you can be a defaulter again.

• Equity release from house selling: This may sound a bit weird because you need to sell your house and release the equity in your house and pay off the loan. But it is better than foreclosure. So, it is yet another option that you can opt for.

• Bankruptcy: This must be the last resort. It can create sever consequences as the bankruptcy report will show up in the credit report for a very long period of time and you will not be eligible for further loans as long as the credit report shows off the bankruptcy filing.

Bankruptcy is certainly not your best way to deal with debts. Debt relief and debt settlement can certainly make a difference, and eliminate a strong percentage of your debt and in the meantime you will avoid the consequences of having to file for bankruptcy. Make sure you are always informed in regards to the best solution for you, and eliminate as much debt as you can. If you want to find more about this, check out the following link:
Free Debt Advice
(http://www.freedebtsettlementsolutions.com/)

# # #

FreeDebtSettlementSolutions is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://www.freedebtsettlementsolutions.com