Debt Reduction – Debt Elimination – New Era Debt Solutions
For most of us, debt is a way of life. It becomes a burden only when income drops and we are unable to keep the debt under control. That’s when we start thinking about options. There are two primary types of debt reduction and counseling programs that can lead to debt elimination. Consumer credit counseling is one option, and debt settlement is another. It is very possible for persons with bad credit to take part in either of these services as they are designed to help with debt reduction and debt elimination for persons experiencing financial difficulties. They are a way out.
- Debt settlement is a very viable option. What this means is that credit card balances will be reduced by as much as 50%, and you will have to pay much less in order to eliminate debt. You can actually resolve your debt quite quickly with this method.
What you need to know about debt reduction through debt settlement is that there will initially be a negative impact on your credit. Debt settlement turns out better with regard to your credit than bankruptcy. Once your reduced debts are paid, your credit report will be able to be rebuilt and you will be debt free.
- Consumer credit counseling is your second option for debt elimination. When you use this type of service you will not take out a loan. What you will do is make one monthly payment to the credit counseling organization and they will disburse it. This option can be used if you are no more than three months behind in your payments.
With regard to your credit score, credit counseling will leave it in better condition. Credit counseling doesn’t allow you to reduce the balance of your debt, however. The option that you choose for recovery will depend on your overall financial situation.