subject: Obtaining Help With Debt [print this page] There's no shame in getting help with debtThere's no shame in getting help with debt. Millions of Americans are seeking relief from massive consumer credit debt. There is over $2 trillion in unpaid credit card and other consumer debt these days, and that doesn't count mortgages. With the economy taking a turn for the worse, many can no longer keep up with payments and are looking for solutions other than bankruptcy.
Solutions are available for getting help with debt, and there are a number of different ways to go about it. Each consumer has a unique set of circumstances and amount owed, and many things factor into choosing the right plan of action.
One of the most important considerations is the amount of debt owed. If it is a lesser amount that doesn't require getting a loan to pay off, then a type of debt consolidation would work well for most people. For those who have a steady stream of income - a job - there is another way if the debts are larger. Debt settlement is a method that does not require the typical consolidation loan. Working through a debt resolution company, the consumer starts paying into an account on a monthly basis. It is insured and managed by the company chosen to work with. Once there is enough in the account to start negotiations with creditors, the debt relief company works to decrease the principle balances. Creditors are receptive to discounting principles rather than see a consumer declare bankruptcy, in which case they receive nothing. There is a similar program called debt management for those who have lost their jobs or have incurred huge debt due to divorce or medical issues.
Each consumer's circumstances are different just as the amount they owe is different, and to truly get help with debt, any program has to be customized to fit their needs. Before consulting with any debt relief organization or company, it is wise for the consumer to become educated about the different methods. It will save time in finding the right kind of company to work with, and it will also alert the consumer to possible problems or even pitfalls with certain types of debt resolution.
A consumer is wise to not believe everything they hear on television or read in the papers. It is better to do a self investigation, and depend on a personal decision. To get help with debt, the consumer first has to start helping himself.
by: Vicki Hall
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