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Step 1
There are Ways to Settle Your Debt.
If you’re thinking of filing for bankruptcy, hold off that thought for a moment while you read the rest of this article. Debt settlement is possible.
While you may believe that filing for bankruptcy is the only way to free yourself from unsecured debt such as credit cards, personal loans, business loans, negligence claims and repossession deficiencies, consider first these negative effects when you succumb to this last, depressing resort:
Filing for bankruptcy results to –
Feelings of fear, embarrassment and other emotional trauma
Losing your valuable assets; your business is likewise at risk
Deduction of payment from your paycheck for up to 60 months
Transparency of your financial affairs to the court and creditors
Having to attend credit counseling and completing a financial management education course before discharge
Your credit report being tainted with a Chapter 13 bankruptcy and a Chapter 7 bankruptcy for several years. -
Step 2
There are two ways to settle your credit card debt, one is through an unsecured debt settlement program and the other is through a Debt Management Plan (DMP).
Both debt settlement solutions aim to reduce the principal amount owed or trim down repayments. A professional financial counselor will help you deal with creditors in order to settle your debt in a completely legal and logical manner. -
Step 3
Unsecured Debt Settlement Programs
Once you are enrolled in this program, your financial counselor will negotiate with your creditors in order to reduce your principal by up to 50%. Repayments of your remaining debt will be made more affordable in normally a period of 12 to 36 months. And an extension of this term is possible in some cases.
Beware of unsecured debt settlement programs that ask for management charges in advance. Fees are taken from each monthly payment and not upfront.
Don’t rush and jump into a debt settlement provider’s office without conducting your research about the company first. Ask around and look for well-established, highly recommended financial consultants. Check to ensure that they have several positive recommendations from clients. You can do this by searching online or by asking your acquaintances. -
Step 4
Debt Management Plans (DMP)
A Debt Management Plan also makes it possible for you to get rid of your credit card debt. Again, a professional advisor will act as an intermediary to negotiate with your creditors. An affordable monthly repayment plan will be your option to pay off the debt.
It is different from an unsecured debt settlement program because in a DMP, the principal amount owed remains the same.
In a DMP, you are protected from being further harassed by creditors since all communications will be channeled through an appointed intermediary.
Have you changed your mind about filing for bankruptcy? Remember that you have options.
Contact Graceful Financial Solutions today at 1-800-733-6170 and speak with an expert debt counselor and your help will surely be on the way. Or visit their website at www.gracefulfinancial.com.
