How Does Debt Consolidation Stack Up Against Other Methods of
Debt Relief?
by Talbert Williams
Debt consolidation is a better solution than bankruptcy;
however, in most instances, it is not the best solution for
resolving your debts.
Many of the debt consolidation programs will exhaust the limited
funds by incurring fees for using their service. Their solutions
will also put you at risk of losing your belongings.
Debt consolidation programs will also charge high rates of
interest for their services. There may even be a monthly charge
attached to the plan. The best solution for resolving debt is to
contact the creditors and ask for extensions on your repayment
plans. Some creditors will negotiate, offering you lower fees if
you pay the debt off sooner. Some creditors will even drop the
debts owed, realizing that the chances of getting their money is
nil. You never know until you ask.
If your bills are lowered, it will grant you time to land some
extra cash to payoff the debt owed. Some creditors may charge
the amount, but lower your monthly installments according to
your wages. This will allow you room to repay the debts at lower
rates. Be aware that paying lower balances on debts may lead to
costly IRS obligations and taxes, since if you are a "write off"
or else reduction candidate, the information is posted with the
IRS.
When it comes to debt, it can become frustrating, since it
appears there is no way out. When you are working to restore
your credit, you are working toward a brighter future. Remember,
each bill you pay off subtracts the amount owed. Debt
consolidation is like cutting grass, in that the lawn looks
fresher once the weeds are whacked. It makes no sense to ignore
your debts; rather working toward debt relief means working now
to get rid of your debts.
Talbert Williams 1DebtFreedom.com All rights reserved
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