Submit a Consolidate Debt Online Inquiry
Today, as interest rates on personal credit debt spiral upward, credit consumers look for ways to control or end their financial distress. Debt consolidation has proven itself to be a realistic way for people overwhelmed with unsecured debt to gain relief and avoid bankruptcy. Submitting an inquiry to consolidate debt online can provide possible options.
Types of Unsecured Consumer Debt
Unsecured debt eligible for debt consolidation remedies include:
- Credit cards of all sorts
- Utility service bills in arrears
- Student loans
- Personal loans
- Collection agencies
- Professional service bills, such as medical and legal
- Tax debts
Reasons to Avoid Personal Bankruptcy
Since 2007, bankruptcy's protection has demanded serious consideration before filing. Personal bankruptcy rules today do not allow all debts, such as education debt, to be eliminated as in the past. Today, credit card debt is the major type of debt eliminated through Chapter 7 bankruptcy proceedings.
As well, the credit consumer must now meet geographic area-specific financial criteria and go to credit counseling in order to qualify for filing. Then, even if able to eliminate qualified debt the debtor must deal with the reality of life after bankruptcy.
Bankruptcy places a derogatory mark on a person's credit reputation. The mark stays on the record for about ten years and can become an obstacle to renewing credit sources. As well, a bankruptcy may taint a person's character, damage self-esteem, and jeopardize their trustworthiness in other people's eyes, including potential employers.
Even though bankruptcy may turn out to be the best type of debt solution for some consumers, other options are possible. Debt consolidation is one of the major alternatives to bankruptcy. Debt consolidation allows debtors to total all their account balances into a single debt that typically carries a lower rate. A debt consolidation strategy can be of great value today as annual account rates can reach between 20 and 30 percent, or higher.
Consider Debt Settlement Before Bankruptcy
Debt settlement refers to the process of a creditor settling for less than what the consumer actually owes. Negotiation of the settlement may be done by the debtor or by a debt settlement professional. If debt consolidation cannot be arranged, the debt settlement option can be used to resolve the consumer's debt without going into bankruptcy.
With debt settlement, the creditor receives at least some of the amount due rather than whatever is awarded by bankruptcy adjudication. The debtor receives some relief of his or her obligation. Settlement terms will vary with the situation. However, creditors are not obliged to even look at a debt settlement proposal. Because of this possibility of a closed door, inquiring first about debt consolidation online will provide important decision-making information.
