Five Debt Relief Options Available

Do you think you are buried in a mountain of unpaid loans?  Worry not as there are, several methods you can take to solve the problems you are enduring.  Here are the top five debt relief options:

1.   Consolidating Debt.

Solidifying your borrowings into one loan has distinct advantages. For starters the, newly established loan will have a new maturity period which will save you from the penalty charges of your individual overdue loans.  Also, the new consolidated loan can have a lower interest rate, which will be significantly lower than the total amount you pay for the respective interest rates of the individual debts.  Also, it will be easier to take care of one debt instead of a number of individual debts.  Debt consolidation options are, truth to say, the most popular kind of debt relief.

2.   Debt settlement.

Believe it or not, 80% of credit card companies are willing to sit down with a delinquent cardholder to conceptualize settlement terms that are mutually beneficial for both parties.  Other credit institutions are also willing to reach debt settlements with their debtors. Don't fall in the trap of allowing overdue debts to forever haunt your credit account because the late payment fines and interest rate will build up and bury you even deeper.  Contact the credit company and try to agree on the easiest fulfillment plan for the satisfaction of your obligation.  Though this method is the easiest to pull off, debt settlement remains one of the more obscure debt relief options available for the debtor.

3.   Debt Refinancing.

Some people work around a demandable debt by applying for another debt to satisfy the previous one.  The new borrowing will have a new grace period, which will save the debtor from penalty fees.  Debt refinancing is the most convenient debt relief option there is.

4.   Credit Counseling Programs.

Registering in any of the many credit counseling programs offered today will allow the borrower to get favorable terms when it comes to the fulfillment of his debts.  The credit counseling institution will negotiate with the lendors for a debt management plan, DMP for brevity, that will make things much simpler for the debtor to pay his obligations.

5.   File For Bankruptcy

As a last resort, and only as a final choice, the debtor may petition the court so that he can be given the status of bankruptcy.  If the court adjudges the debtor to be bankrupt, his assets will be taken and sold to satisfy his unsecured debts. In the event that the unsecured debts are not fully paid, the debtor will be relieved of them after foreclosure and application of his previously discussed properties.