Options to Resolve Debt (Bankruptcy vs Equity Loan vs Credit Counseling vs Debt Settlement)
Beyond Finance TeamPosted on Mar 8, 2018
If you need credit card debt relief, you might feel overwhelmed about how to address it. Whether you’re making the minimum monthly payments or trying to pay down your balance faster, it can be a drain on your finances and your psyche.
Don’t be discouraged because you have options. We’ll break them down for you, positives and negatives, so that you can see how to get on better financial footing.
- Status Quo. If you continue to pay only the minimum amount due, or slightly more, you will not get out of debt any time soon. For example, if you have $10,000 in credit card debt with an 18% interest rate and pay only the monthly minimum required, it could take you 28 years to resolve your debt, and you will have paid $14,423 in interest, creating a debt snowball.
- File Bankruptcy. Even if you qualify (and it will cost you to find out), a Chapter 7 bankruptcy can remain on your credit report for up to 10 years and a Chapter 13 bankruptcy for up to 7 years. A bankruptcy notation on your credit report is not something a potential lender wants to see—in fact, it will be a serious detriment that will affect your borrowing needs for years to come. A bankruptcy may also affect your ability to get a job from certain employers.
- An Equity Loan. Some use equity from their home when tackling a debt problem—but this is a very risky venture. To begin, the amount of debt owed remains unchanged. And although the interest rate may be lower, the repayment schedule could span 10 to 30 years! More alarming is that you are now turning unsecured debt into secured debt which means if you default on your equity loan, you could risk losing your home!
- Credit Counseling. Unfortunately, credit counseling establishments are essentially working for the credit card companies and are acting as their collection agency. In addition, your expected payments are generally higher than what you are currently experiencing since you are trying to pay down all of your debt, interest, AND monthly fees to the credit counseling company.
- Debt Settlement. This is what we do. And here’s what you can expect from us:
But don’t take our word for it—see what our clients have to say about our premier debt resolution services.
Call us at (1-800-495-4069), at your earliest convenience for a FREE, no obligation, and discreet consultation. Let us develop a personalized debt settlement program that will not only save you money, but years of anguish trying to deal with this financial hardship on your own. We are here for you.