Debt Reduction Solutions – Two Legitimate Solutions For Getting Out Of Debt

There are many debt reduction solutions, but not all are created equal nor do all give the same level of benefits

. When seeking solutions it's always best to find ones that fit your circumstances. In this article I'll present the two solutions that work best for people in most circumstances. After reading you'll have a clearer sense of how to move forward and solve your financial problems.

Optimum Strategy #1 - Debt Settlement

This solution involves negotiating a reduction or write-off of the total amount owed to the lender. So for example if you owed $10,000 and a settlement of 50% was reached, you'd see $5,000 wiped off your debt immediately. Sounds enticing doesn't it? And so it should; debt settlement is a very popular option these days because it works and it brings benefits very quickly.

Optimum Strategy #2 - Debt Consolidation

This solution involves the pooling of all your existing debt into one single amount and thereafter one single monthly payment. The benefit of this is that you don't have to deal with multiple lenders and you can see a reduction in the interest charged on the loans you had. There are big disadvantages with this method and below I'll slow you why solution number 1 is always preferred.

Why Debt Settlement Trumps Consolidation

The reasons are many but the main ones are the cost and immediacy benefits. As mentioned before settlement brings an almost immediate reduction in your total debt, whilst consolidation doesn't reduce overall debt at all - it just makes the debt more manageable.

Settlement companies who handle the process charge for less for the services than consolidation companies. Debt settlement also is more advantageous because unlike consolidation, the 'life' of the debt is not extended.

So, I hope you see that as debt reduction solutions go, the ones outlined above are sound. They fit a diverse set of financial circumstances and can be accessed fairly easily. The better option of the two of course is debt settlement, so when you do decide to reduce your debt that should be your first port of call. I highly recommend that you first start off with afree debt evaluation in order determine the best course of action based on your financial situation.

Debt Reduction Solutions Two Legitimate Solutions For Getting Out Of Debt

By: archerfraizer

POST COMMENT

Settle Debt For Less - How Increased Debt Industry Oversight Is Ensuring You Get A Better Settlement Settle Debt For Less - Why You Shouldn't Have To Pay More Money To Get Out Of Debt Why Everyone Needs Debt Settlement Attorneys Settle Debt For Less - Free Advice To Help You Save Money When Getting Out Of Debt Debt Settlement Companies – How To Ensure Your Debt Settlement Company Is Legitimate Debt Settlement – When Does Debt Settlement Make Financial Sense For Me? How To Overcome Personal Debt Debt Settlement Relief – The Truth Behind Debt Settlement Debt Stress Affects Many, Don't Let It Happen To You How To Get Off The Treadmill Of Debt Debt Settlement Help – Understanding The Benefits Of Debt Settlement New Debt Settlement Laws - How Stricter Regulation Of Debt Processes Helps Consumers Advantages Of Debt Settlement – When Does Debt Settlement Make Financial Sense?