Consumer Debt Relief Tips – How Consumers Can Legally Eliminate Unsecured Debts

Nov. 17, 2010 - PRLog -- The sudden recession has hit the consumers below the belt. All of a sudden the world around them has collapsed and left them in great financial mess. This is because all of a sudden, the income has dwindled and the expenses have mounted. Apart from the expenses due to daily needs, there are expenses due to accumulation of various types of debts, be it due to various loans or credit cards. So, how consumers can legally eliminate unsecured debts and get relief from these liabilities. Here are some of the consumer debt relief tips that you as a consumer can follow.

These consumer debt relief tips are completely legal and approved by the Government and the creditors alike.

In situations, when your creditors are hounding you, the first option that comes to your mind is to declare bankruptcy. But then, this is not a good solution. Though it looks simple to declare yourself bankrupt it has many short term and long term implications that you should be aware of.

  1. Because of the policy changes made by the Federal Government, you can no longer absolve yourself completely after deciding to declare yourself bankrupt.
  2. You will have to face the “means test” and only when you pass it will you be declared bankrupt.
  3. Once you are declared bankrupt, your credit rating drops and you are also not allowed to take loans or credits for next 7-10 years.

So what are the other solutions for sorting out the debt mess?

The other solutions are the debt consolidation and the debt settlement. Depending upon your situation, you can use both the methods either individually or together. If you are comfortable then you can go in for credit counselling also.

Let us see in detail what these consumer debt relief tips have in store for us: -

   * Credit Counseling: It is one of the best techniques of getting free from the unwanted liabilities. The credit counsellors help you in analyzing your situation and finding out ways to repay your debts. They also help you in talking to your creditors and reducing the amount. Many a times if you make certain adjustments in your income and expenses, you are able to save some amount, which can then be utilized to repay your debts.
   * Debt consolidation: Many a times you have to repay many creditors and it becomes difficult to prioritize anyone of them. Under this solution you are able to combine all your debts into a single reduced loan on lower interest with a particular schedule. It is given against collateral and hence you should be careful about repayments.
   * Debt settlement: Many a times the arrears are very high due to accumulation of various charges like the late payment charges, service taxes, interests, etc. Under this solution you or your representative negotiates with the creditors to reduce or remove these charges and charge you less on monthly repayment schedule. But be careful this solution is available only of your dues are $10,000 or more.

Remember that all the above consumer debt relief tips are aimed at providing you relief from your liabilities.
Free Debt Advice
(http://www.DisputeDebts.com)

# # #

To speak with a debt relief specialist for a free debt consultation check out the following link. They will provide a free and unbiased evaluation of your financial situation to determine what the best debt relief option is.
Free Debt Advice
(http://www.DisputeDebts.com)

Or Call - 877-853-6466