There are many different strategies for credit debt relief, but which one is really the best? In this blog post, I will discuss three of the most popular and effective methods for achieving credit debt relief. Here are some options to consider when asking yourself, what is the best credit card debt relief strategy?
These include:
1) Debt negotiation
2) Debt settlement
3) Filing bankruptcy
Debt Negotiation:
Pro – You can negotiate with your creditors to pay a reduced amount of the outstanding debt.
Con – It may take years for negotiations to work out, and in the meantime, you’ll need to find other ways to make payments on your debt so that they don’t charge interest or penalties.
Negotiating with creditors is an option that should be considered when contemplating What is the best credit card debt relief strategy, but will come with drawbacks if not done right.
Debt Settlement:
A debt settlement program is the best option for individuals who are struggling financially and need help dealing with their credit card balances.
This type of Credit Debt Relief strategy might be suitable if you have a lower monthly income, but substantial debts that cannot be managed through traditional methods like getting another job or cutting back on other expenses. If you decide to go this route, make sure you do your research so you understand all the pros and cons.
Bankruptcy Filing:
Bankruptcy filing is another credit debt relief strategy?
Pro – You may get all, or at least some of your debts discharged (erased) in the bankruptcy process.
Con – Bankruptcies remain on your credit report for about ten years and can make it difficult to obtain mortgages, loans, insurance coverage’s etc without paying significantly higher rates because you have a much lower credit score.
Chapter 13 Bankruptcy Filing:
Pro – You might be able to keep your property in Chapter 13 bankruptcy, which is not possible with a chapter seven.
Con – Chapter thirteen filings require you to pay back a portion of what you owe and can take up to five years or more before the case is completely resolved. This could make it difficult for some people who need quick relief from their debts like those facing foreclosure on their home because they cannot afford monthly payments and still have other expenses that come due each month.
Chapter 7 Bankruptcy Filing:
Pro – Chapter seven filings are much easier to complete and most cases conclude within three months.
Con – You might not be able to keep your property or other assets in a chapter seven filing, which would result in the liquidation of all those assets for creditors with unsecured claims against you. This could make it difficult for some people who need quick relief from their debts like those facing foreclosure on their home because they cannot afford monthly payments and still have other expenses that come due each month.
Conclusion
Finding the right debt relief option can be a challenging task given your circumstances. Over one in six people is now living beyond their means.
If you are eager to put an end to your credit trouble; take a look at these solutions: Debt Settlement, Bankruptcy or other Credit Card relief programs that could work in your favor.
You should feel free to contact our team of professionals at Alleviate Financial Solutions at any time.
We will walk you through our process and help you get moving towards getting your finances under control.
