Personal debts can inflict severe financial and emotional losses. Most of the cases, credit cards are the culprits. Many of you use several credit cards and sometimes use those cards irrationally. This leads to numerous cases of debt problems in the country. Debt problem can simply destroy your financial prospects and this can also result into emotional breakdown. Anyways, when you are troubled with debts, you can resort to professional debt elimination options. Two popular professional debt elimination options are credit card debt consolidation and debt settlement. Both these professional programs target at eradicating your debts and to help you achieve financial freedom. Importantly, both these programs are considered as far better option than filing for bankruptcy. Bankruptcy has serious negative implications on your credit score. It simply batters your credit score. Not only have that, the negative impact of bankruptcy remains on your credit scored for many years. This implies that if you file for bankruptcy, your chances of getting a new credit with favorable terms are significantly reduced.
In debt consolidation program, you get the chance to pay off your unsecured debts by just making one single monthly payment for a certain period of time. By following this professional program, you can put an end to the harassing collection calls made by the debt collectors on behalf of the creditors. This also gives you the relief from making multiple payments to all your creditors every month. Here it is to be noted that the single monthly payment amount is less than the total monthly payments you used to make to multiple creditors prior to enrolling into debt consolidation program. With lower monthly payments, it becomes easy for you to pay the debts on a regular basis. Anyways, one important thing in debt consolidation program is to select your debt consolidation company. You need to ensure that the consolidation company that you have selected is a genuine one. You can easily find a debt consolidation company from your friends and relatives. However, before selecting your debt consolidation company you must check the license and the registration of the company. You should not however forget to check the status of the company with Better Business Bureau (BBB). If the company has good record with BBB, you can be very must assured about its genuineness. On the other hand, if the company has patchy records with BBB, it would be wise to avoid that company immediately. The company then decides the single monthly payment amount for you. By paying that amount for a certain period of time, you become free of debts.
Again, in the debt settlement program, a one time debt settlement amount is decided for you. This debt settlement amount is less than your outstanding balance. This settlement amount is decided after negotiation with your creditors. You pay the lump sum debt settlement amount to the settlement company. The company then distributes the money to your creditors as per the negotiation. Here also you need to take due care to select a genuine debt settlement company.