What Are The Benefits and Consequences Of Getting Rid Of Debt The Easy Way

 


Visitors: 638

We have all experienced getting so far in debt we don’t know how we’re going to get out. There are many different options that you have for quick relief with benefits and consequences. You can look at the overview and see which option is the best option for you.

Consolidation

1. Benefits

  • Lower monthly payments

  • No worry of paying multiple debt collectors every month, pay only one agency

  • Percentage of debt charged by consolidation company

  • Costs for Loan

  • Cost for counseling or negotiation

2. Negatives

  • Appears on your credit like bankruptcy

  • Requires you to get another loan

  • If you own a home loan will be tied to your equity

  • Takes between 5 and 10 years to pay off the loan

  • First few years no big change in debt reduction

  • Does not always prevent creditors from future legal collection action

Bankruptcy

1. Benefits

  • Costs between $700-$3000

2. Negatives

  • On credit report for ten years

  • Finances made public record

  • No assets are allowed with Chapter7

  • Creditors can file adversarial hearing that costs $3000

  • Credit severely damaged

Debt Relief Program

1. Benefits

  • Payments can stop as soon as the program starts

  • Credit Repair available after a short time

  • Good credit repair options available

3. Negatives

  • Usually only credit card debt and unsecured signature loan

About The Author

Marcus Ware is the webmaster of www.waresbusiness.com and promotor of affiliate products.

waresbus@waresbusiness.com

(351)

Article Source:


 
Rate this Article: 
 
Debt Loans Can Rid You Of Accumulated Debt And Reduce Your Monthly Repayments
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

What are the Tax Consequences of Debt Settlement?

by: Manuel Davis Jr. (November 03, 2010) 
(Finance/Taxes Income)

What Are the Debt Consolidation Loan Consequences?

by: Neva Dohm (September 08, 2008) 
(Finance/Debt Consolidation)

Getting an IRS Tax Debt Know the Consequences

by: Richard Close (July 28, 2008) 
(Finance/Taxes)

The Consequences a Debt Consolidation Loan Carries

by: Joel Cohen (May 18, 2007) 
(Finance)

Positive and Negative Debt Consolidation Loan Consequences

by: Neva Dohm (October 01, 2008) 
(Finance/Debt Consolidation)

Consequences of Debt, Interest Rates and Undependable Foreign Currency

by: Eshwarya Patel (September 21, 2008) 
(Finance/Credit)

Debt Consolidation Loans: Get Away with the Damaging Consequences of Bad Credit

by: Dirk Wagner (November 30, 2006) 
(Finance)

Debt Settlements - How Debt Settlements Are Like Bankruptcy Without Consequences

by: Matt Couch (December 28, 2009) 
(Finance/Debt Management)

Unsecured Debt Consolidation Loan - The Smart Way to Get Rid of Credit Card Debt

by: Thomas Erikson (July 12, 2007) 
(Finance)

Debt Loans Can Rid You Of Accumulated Debt And Reduce Your Monthly Repayments

by: Louis Rix (January 28, 2008) 
(Finance/Loans)