Debt Relief Choices

If you are in debt, you no doubt have heard about the debt relief choices available to you. Depending on your situation, any one of them may work for you.

The first of the debt relief choices is the consumer credit counseling services or CCCS. A cccs is a company that will negotiate with your creditors to get the late fees and over limit charges dropped, and the interest rate lowered. You pay your creditors back the full amount you owe them over a set period of time. If you can afford to stick to one, a CCCS will keep your credit score from being adversely changed.

Debt relief choice number two is debt settlement. A debt settlement is working with your creditors to agree to pay only a percentage of your total debt, in one lump sum. Your credit score will go down, but can be repaired pretty easily. This strategy works great if you can put together the funds to pay off your creditors at once.

Finally, bankruptcy is going to court to claim that you simply cannot pay. You may or may not have to sell your assets to pay your creditors, depending on which type of bankruptcy you file.

Under a chapter 7 bankruptcy, you can get rid of your debt after you use your liquid assets to pay back part of your debt.

Under a chapter 13 bankruptcy, you agree to a three to five year repayment plan. You send money to the court who then pays your creditors.

This is a quick look at the debt relief choices currently available.